This chapter on the time value of money has me completely blanked. Please help.

Question

This chapter on the time value of money has me completely blanked. Please help. If you can provide a step by step that would be great. Thanks.
Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $34,000 per year on June 30, beginning in 2016 and continuing through 2019. To develop this fund, Stephen intends to make equal contributions on June 30 of each of the years 2012 This chapter on the time value of money has me completely blanked. Please help. If you can provide a step by step that would be great. Thanks.
Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $34,000 per year on June 30, beginning in 2016 and continuing through 2019. To develop this fund, Stephen intends to make equal contributions on June 30 of each of the years 2012 This chapter on the time value of money has me completely blanked. Please help. If you can provide a step by step that would be great. Thanks.
Stephen Bosworth, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $34,000 per year on June 30, beginning in 2016 and continuing through 2019. To develop this fund, Stephen intends to make equal contributions on June 30 of each of the years 2012

Explanation / Answer

You need to calculate the present value of four withdrawals of $34,000, discounted back at 8%.

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