Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 Dave wants to retire now but isn't at the eligible retirement age to draw his pension. He has some investment savings and wants to be able to take out $25,000 at the end of each of the next 5 years. His investment pays an average of 6% annual interest. What is the present value of the funds that Dave will be drawing from his investment account?
A)$125,000.00
B)$117,500.00
C)$41,666.67
D)$93,412.50
E)$105,310.00

Question

Present Value of 1  Future Value of 1  Present Value of an Annuity of 1  Future Value of an Annuity of 1  Dave wants to retire now but isn't at the eligible retirement age to draw his pension. He has some investment savings and wants to be able to take out $25,000 at the end of each of the next 5 years. His investment pays an average of 6% annual interest. What is the present value of the funds that Dave will be drawing from his investment account?
A)$125,000.00 
B)$117,500.00 
C)$41,666.67 
D)$93,412.50 
E)$105,310.00

Quizplus · Accepted Answer

The Answer of Present Value of 1  Future Value of 1  Present Value of an Annuity of 1  Future Value of an Annuity of 1  Dave wants to retire now but isn't at the eligible retirement age to draw his pension. He has some investment savings and wants to be able to take out $25,000 at the end of each of the next 5 years. His investment pays an average of 6% annual interest. What is the present value of the funds that Dave will be drawing from his investment account?
A)$125,000.00 
B)$117,500.00 
C)$41,666.67 
D)$93,412.50 
E)$105,310.00