Exercise 6-8 (Part Level Submission) Henry Weatherspoon, a super salesman contem

Question

Exercise 6-8 (Part Level Submission) Henry Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 11% basis that will enable him to withdraw $20,540 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Henry intends to make equal contributions on June 30 of each of the years 2017-2020 (a) Click here to view factor tabl How much must the balance of the fund equal on June 30, 2020, in order for Henry to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Balance of the fund equal on June 30, 2020 LINK TO TEXT VIDEO: SIMILAR EXERCISE

Explanation / Answer

Year Withdrawals PVF @ 11% Present Values 2021 20540 0.900901 18504.5 2022 20540 0.811622 16670.72 2023 20540 0.731191 15018.67 2024 20540 0.658731 13530.33 Present worth at June30, 2020 63724

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