- PV represents the present (current) value of the investment ($)

R = $100 000

i=

r / magic#

n = t X magic# = 240 n = 20 X 12 = 240

Jay-Z's career takes a dive, and his life savings total only $300 000 when he decides to retire. He invests in an annuity that will pay him quarterly for the next 30 years. If his account earns 5.2% annual interest, compounded quarterly, a) How much can Jay-Z withdraw each quarter (every 4 months)?

That means find "R"! b) How much interest will he have made over the entire investment?

a)

R=

Practice/Worksheet no. 1-6

L4 Present Value of Annuities F14.pdf

b) How much interest will he have made over the entire investment? R = That means find "R"! a). Page 3 of 4. L4 Present Value of Annuities F14.pdf. L4 Present ...

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