How much do you have to deposit today in order to allow 5 annual withdrawals, beginning at the end of year 17, with a first withdrawal of $2430 and with subsequent withdrawals decreasing at the rate of 2% over the previous year's withdrawal? Assume an interest rate of 9% compounded annually.
Round your answer.
Answer and Explanation:
2700 is the deposit needed today.
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from Financial Accounting: Help and ReviewChapter 9 / Lesson 2
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