What is the present value of four year ordinary annuity

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Reference no: EM132071440

1. How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $90,000 per year forever, beginning 35 years from now? Assume the account earns interest at 10% per year.

2. What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $600 at the end of Year 4 if the interest rate is 5%?

a. $8,484.21

b. $8,496.41

c. $8,508.61

d. $8,459.81

e. $8,472.01

Reference no: EM132071440

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