(Ignore income taxes in this problem.) Assume you can investmoney at a 11% rate of return. How much money must be invested nowin order to be able to withdraw $4,900 from this investment at theend of each year for 7 years, the first withdrawal occurring oneyear from now?

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Related questions

(Ignore income taxes in this problem.) Sam Weller is thinking ofinvesting $120,000 to start a bookstore. Sam plans to withdraw$35,000 from the business at the end of each year for the next fiveyears. At the end of the fifth year, Sam plans to sell the businessfor $130,000 cash. At a 12% discount rate, what is the net presentvalue of the investment? (Round your 'PV factors' to threedecimal places.) (Use Exhibit11b-1, Exhibit11b-2)
rev: 12_14_2012,12_21_2012, 01_14_2015_QC_CS-3712

$126,175

$73,710

$79,885

$120,000

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