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Find what the amount of money to invest today is

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Reference no: EM132955647

Problem 1: You estimate that it will take five years to complete your college education. Your parents want to invest enough money today at an interest rate of 8% compounded annually to allow you to withdraw $23,000 at the end of each year for the next five years, with nothing left at the end. The amount of money to invest today is:

Multiple Choice

Option 1: $115,000.

Option 2: None of the answers is correct.

Option 3: $33,790.

Option 4: $91,839.

Option 5: $85,959.

Reference no: EM132955647

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