Find the Present Value of the Decreasing Annuity Necessary to Fund

question 72

Short Answer

Find the present value of the decreasing annuity necessary to fund a withdrawal of $1,300 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.
​ $P V =$ $ __________.

---

Definitions:

Liquidated Damages

Predetermined monetary compensation agreed upon by parties in a contract as a remedy for specific breaches, especially delays.

Penalty Clause

A provision in a contract that specifies a penalty to be paid by a party in the case of a breach of the contract.

Liquidated Damages

A predetermined sum agreed upon in a contract, payable as compensation for failure to perform specific acts or to fulfill certain conditions.

Doctrine Of Part-Performance

A legal concept in contract law that allows an unwritten contract to be enforced if one party has taken significant steps to perform their part.