To determine how much money you would need to save today to withdraw $10,000 a year for five years, you would use the present value of an annuity tables.

Question

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The present value of an annuity table helps in calculating the amount of money one needs to invest today to be able to withdraw a fixed amount annually for a certain period of time, making it applicable for determining how much to save today to withdraw $10,000 a year for five years.

To Determine How Much Money You Would Need to Save