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You Are Going to Withdraw $1,000 at the End of Each

Question 94

Multiple Choice

You are going to withdraw $1,000 at the end of each year for the next three years from an account that pays interest at a rate of 8% compounded annually. How much must there be in the account today in order for the account to reduce to a balance of zero after the last withdrawal?


A) $793.83
B) $2,577.10
C) $2,602.29
D) $2,713.75
E) $2,775.67

Correct Answer:

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