Question 1071060: Please someone help!!!
Find the present value PV of the annuity necessary to fund the withdrawal given.
Round your answer to the nearest cent.
$1,000 per quarter for 10 years, if the annuity earns 6% per year
PV = $ ?
Found 2 solutions by rothauserc, MathTherapy:
Answer by rothauserc(4718)   (Show Source):
You can put this solution on YOUR website! We want to get $4000 each year for 10 years
:
PV = 4000 * [ (1 - (1 + i)^-n) / i ], where i is interest and n is number of payments
:
PV = 4000 * [ (1 - (1 + 0.06)^-10) / 0.06 ] = $29440.35
:
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! Please someone help!!!
Find the present value PV of the annuity necessary to fund the withdrawal given.
Round your answer to the nearest cent.
$1,000 per quarter for 10 years, if the annuity earns 6% per year
PV = $ ?
You need to use the following formula for the present value of an ORDINARY ANNUITY, or:  , where:
 = Present Value of the ORDINARY ANNUITY (Unknown, in this case)
 = Payment, per period ($1,000, in this case)
 = Annual Interest rate (6%, or .06, in this case)
 = Number of ANNUAL compounding periods (quarterly, or 4, in this case)
 = Time, in years (10, in this case)
When calculated, 
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