Question 1203887
the calculator qat <a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a> can help you solve this.


htere are the results.


<img src = "http://theo.x10hosting.com/2023/092502.jpg">


a) how much do you need in your account at the begining?


present value is 264,850.36.
that's how much need at the beginning of the investment eriod.


b) how much total money will you pull out of the account?


withdrawals of 25000 per year * 20 years = 500,000.
that's the total amount you will be able withdraw from the account over the investment period.



c) how much of that money is interest?


500,000 minus preseent value of 264,850.36 = 235,149.64
that's the total interest your earned on your investment over the investment period.


note:


money that you invest into the account is either entered or shown as negative.
money that you receive from the account is either entered or whown as posiiive.


in this problem, you received the 25000 at the end of each year.
that is entered as positive.
the present value required is money that you needed to invest up front.
that is shown as negative.


the calculator requires that convention to be used.
if you enter the payment as positive, it will give you the present value as negative.
if you enter the payment as negative, it will give you the present value as positive.