How much should he deposit into the account

Assignment Help Accounting Basics

Reference no: EM132788153

Problem 1: Your uncle is 50 years old and is planning to retire at the age of 68. He found out that you are taking a finance course and has requested your help to figure out how much money he needs to put in the bank now so that he can withdraw $88,000 each year for 18 years starting at the end of the first year of retirement. Assume that he can earn 10 percent annual interest. How much should he deposit into this account. (Note: Answers are rounded)

A. $179,350

B. $163,050

C. $173,240

D. $118,010

E. $125,390

F. $129,810

Reference no: EM132788153

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