(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $8,000 a year for the next 7 years (periods 11 through 17) plus an additional amount of $16,000 in the last year (period 17)? Assume an interest rate of 8 percent.

(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $8,000 a year for the next 7 years (periods 11 through 17) plus an additional amount of $16,000 in the last year (period 17)? Assume an interest rate of 8 percent.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Question

(Present value of complex cash flows) How much do you have to deposit today so that beginning 11
years from now you can withdraw $8,000 a year for the next 7 years (periods 11 through 17) plus an
additional amount of $16,000 in the last year (period 17)? Assume an interest rate of 8 percent.
The amount of money you have to deposit today is $
(Round to the nearest cent)

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