How much must be deposited today into an account earning 3% interest annually to support an annual withdrawal of $1800 a year in a perpetuity? b) what if the first withdrawal starts at the end of year 6?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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a) How much must be deposited today into an account earning 3% interest annually to support an annual withdrawal of $1800 a year in a perpetuity? b) what if the first withdrawal starts at the end of year 6?
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