How much would you have to deposit in the bank today so that you could withdraw $2,000 per year for 4 years earning 8%?

Name: How much would you have to deposit in the bank today so that you could withdraw $2,000 per year for 4 years earning 8%?
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Question

Quizplus · Accepted Answer

To find the present value of an annuity, you use the formula for the present value of an annuity: PV = PMT × [(1 - (1 + r)^-n) / r]. Here, PMT is $2,000, r is 0.08, and n is 4. Plugging in these values gives the present value of $6,624.

How Much Would You Have to Deposit in the Bank