Find the Present Value of the Decreasing Annuity Necessary to Fund

question 10

Multiple Choice

Find the present value of the decreasing annuity necessary to fund a withdrawal of $1,500 per quarter for 20 years, if the annuity earns 3% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. ​

• A)$90,125.41
• B) $90,765.53
• C) $89,965.31
• D) $90,204.49
• E) $89,991.66

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Definitions:

Inferences

The process of drawing logical conclusions from premises known or assumed to be true.

Meta-Analysis

A statistical technique that combines the results of multiple scientific studies to arrive at a conclusion about an overall body of research.

Unintended Changes

Alterations that occur without a deliberate plan or intention, often leading to unexpected outcomes.

Natural Contexts

Environments or situations that occur naturally, without human intervention, allowing for the observation of behaviors and phenomena in their true form.