Find the Present Value of a Decreasing Annuity Necessary to Fund

question 127

Short Answer

Find the present value of a decreasing annuity necessary to fund withdrawals of $2,000 per quarter for 20 years, if the annuity earns 3% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits). Round your answer to the nearest cent.
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$__________

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Definitions:

Government Service

A sector that encompasses various activities, services, and operations conducted by the government to serve the public and implement policies.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society as a whole.

Budgets

Financial plans detailing projected income and expenses over a specific period.

Public-sector Managers

Individuals responsible for directing, controlling, and overseeing entities in the government segment that provide public services.