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How should he compute his required initial investment

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Question - Robert wants to withdraw $50 (including principal) from an investment fund at the end of each year for five years. How should he compute his required initial investment at the beginning of the first year if the fund earns 6% compounded annually?

$50 times the future value of a 6% annuity of $1.

$50 divided by the present value of a 6% annuity of $1.

$250 divided by the future value of a 6% annuity of $1.

$50 times the present value of a 6% annuity of $1.

Reference no: EM132198285

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