From your prior job, you built up a small retirement account. That account will start paying you cash flows in 7 years. The cash flows will be $27,255 per year and there will be a total of 37 yearly cash flows paid. If the interest rate is 5.5% per year (EAR), what is the value needed in the retirement account now to fund these cash flows? The amount in the account today must be $ (Round to the nearest dollar).

From your prior job, you built up a small retirement account. That account will start paying you cash flows in 7 years. The cash flows will be $27,255 per year and there will be a total of 37 yearly cash flows paid. If the interest rate is 5.5% per year (EAR), what is the value needed in the retirement account now to fund these cash flows? The amount in the account today must be $ (Round to the nearest dollar).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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