How much needs to be invested today if your goal is to be able to withdraw $10,000 for each of the next nine years beginning one year from today and $50,000 ten years from today? The return on the investment is expected to be 6%.
A)$68,017
B)$95,937
C)$78,176
D)$132,075

Question

Quizplus · Accepted Answer

The investment ($95,937) = [$10,000 multiplied by the present value of a $1 annuity, 9-period, 6% table value (6.8017)] plus [$50,000 multiplied by the present value of a $1, 10-period, 6% table value (.5584)]

How Much Needs to Be Invested Today If Your Goal