Question

How much must be deposited on january 1, 2014 in a savings account paying 6% annually in order to make annual withdrawals of $30,000 at the end of the years 2014 and 2015? the present value of one at 6% for one period is .9434?

Answer 1

(30,000 *.9434) + [30,000 * (.9434) (.9434)]
28,302+ (30,000 * .89000356)
28,302 + 26,700.1068
= $55,002.1068
I don’t know if you have to have the decimals that’s why I included them. Hope it helps.