 # Question & Answer: Henry Quincy wants to withdraw \$37,820 each year for 11 years from a fund that earns 9% interest. (Use the tables below.)…..

Brief Exercise 6-10

Henry Quincy wants to withdraw \$37,820 each year for 11 years from a fund that earns 9% interest. (Use the tables below.)

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Question & Answer: Henry Quincy wants to withdraw \$37,820 each year for 11 years from a fund that earns 9% interest. (Use the tables below.)…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS \$13/PAGE      How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

 First withdrawal at year-end \$ First withdrawal immediately \$ 1.Present value=\$37820*Present value of annuity factor(9%,11)

=\$37820*6.80519(Approx)

=\$257,372(Approx).

2.Present value=\$37820*Present value of annuity factor(9%,11)(Beginning of year compounding)

=\$37820*7.41766(Approx)

=\$280,536(Approx).