The Solution to This Problem Requires Time Value of Money

question 113

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. ​
How much would have to be deposited in a savings account earning 6%, so that equal annual withdrawals of $200 can be made at the end of each of 10 years? The balance at the end of the last year would be zero.

• A) $528
• B) $1,472
• C) $2,000
• D) $2,636

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