Find the Present Value of a Decreasing Annuity Necessary to Fund

question 104

Multiple Choice

Find the present value of a decreasing annuity necessary to fund withdrawals of $2,500 per quarter for 20 years, if the annuity earns 4% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits) . Round your answer to the nearest cent.

• A) \(P V = \$ 137,220.52\)
• B) \(P V = \$ 175,298.95\)
• C) \(P V = \$ 75,500.91\)
• D) \(P V = \$ 45,113.88\)
• E) \(P V = \$ 75,501.91\)

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