What amount must be set aside now to generate payments of $60,000 at the beginning of each year for the next 11 years if money is worth 6.06%, compounded annually? (Round your answer to the nearest cent.)
Added by Janet M.
Step 1
The formula for the present value of an annuity due is: PV = PMT * [(1 - (1 + r)^-n) / r] * (1 + r) where: - PV is the present value - PMT is the payment per period - r is the interest rate per period - n is the number of periods In this case, PMT = $60,000, r Show more…
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