If you desire to withdraw the amounts given in the following table over the next

Question

If you desire to withdraw the amounts given in the following table over the next five years from a savings account that earns 7% interest annually, how much do you need to deposit now? Amount 23,000 48,000 Click the icon to view the interest factors for discrete compounding when i-7% per year More Info You need to deposit now. (Round to the nearest dollar.) le Payment_ Compound Present Compound Sinking Present Capital Fund Factor (AF, i, N) 1.0000 0.4831 0.3111 0.2252 0.1739 Worth Factor (P/A, i, N) 0.9346 1.8080 2.6243 3.3872 4.1002 Amount Factor Recovery Factor (FIA, ?, N) Factor (F/P i, N (P/F i, N) 0.9346 0.8734 0.8163 0.7629 0.7130 Factor (AP, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 1.1449 2.0700 3.2149 4.4399 5.7507 1.4026 1.5007 1.605B 1.7182 0.6663 0.6227 0.5820 0.5439 0.5083 7.1533 8.6540 10.2698 11.9780 13.8164 0.1398 0.1156 0.0975 0.0835 0.0724 4.7665 5.3893 5.9713 6.5152 7.0236 0.2098 0.1856 0.1675 0.1535 0.1424 Enter your answer in the answer box and then click Check Answer 1.9672

Explanation / Answer

Present value=Future value*Present value of discounting factor(rate%,time period)

=15000/1.07^2+23000/1.07^3+36000/1.07^4+48000/1.07^5

=(15000*0.8734)+(23000*0.8163)+(36000*0.7629)+(48000*0.7130)

which is equal to

=$93564(Approx).

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