17. (Ignore income taxes in this problem.) If you wanted to withdraw $12,000 from a bank account at the end of each of the next
20 years, approximately how much would you have to invest in the account today assuming a 6% interest rate? a. $20,924
b. $38,462
c. $74,880
d. $137,604
The amortization formula is good for this. It tells you the principal P that must be invested to support payments of A each year for t years when the interest rate is r:
