Saul Berenson wants to create a fund today that will enable him to withdraw $20,

Question

Saul Berenson wants to create a fund today that will enable him to withdraw $20,000 per year for 10 years, with the first withdrawal to take place 10 years from today. If the fund earns 10% interest, how much must Saul have in his fund in 10 years, prior to the first withdrawal?

BEG mode, 10 N, 10 I/Y, 20000 PMT, 0 FV, CPT PV = 135180

The answer is $135,180

In order to make the withdrawals as planned, how much should Saul deposit in his fund today?

Please show me what inputs to put in the financial calculator to get to the answer of $52118

Explanation / Answer

$52118 Should Saul deposit in his fund today

INPUTS FOR FINACIAL CLAULATOR TO GET $52118

Time Value of Money (TVM) The TVM keys are located on the third row from the top of the keyboard. N I/Y PV PMT FV In general, TVM problems involve four variables

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