What amount must you invest today a 5% interest rate compounded annually so that you can withdraw $500 at the beginning of each year for the next 5 years?


Financial calculator solution.



Inputs:
N =5 * 1 .
I = 5 / 1 .
PMT = 500 .
FV= 0 .
 Change your calculator to BEGIN mode.
 

Output: PV = ?