What amount should you invest today if you want to draw $1,500/year from an account for 25 years with an annual interest rate of 5%?

What amount should you invest today if you want to draw $1,500/year from an account for 25 years with an annual interest rate of 5%?

 

 

Answer:

PV=A*(P\A.i,n)

=1500(P\A,5%,25)

=1500*14.094

=21141

so I will invest $21141 amount to get $1500 each year for 25 year

Asked on February 14, 2018 in economics.
Add Comment
0 Answer(s)
  • Votes
  • Oldest

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.