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Going rate is 4.45% how much can i deposit today in order to establish an annuity...

Question

Going rate is 4.45% how much can i deposit today in order to establish an annuity...
going rate is 4.45% how much can i deposit today in order to establish an annuity where i can withdraw 5,000 a year per year for the next 18 years?

Answers

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=5,000[1-(1.0445)^-18]/0.0445

=5,000*12.20858724

=$61042.94(Approx).


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