You may use a spreadsheet like Excel to help you find the solution to this question. How much money would you have to put in the bank today, assuming that the bank account paid interest at the rate of 5% per year, in order to be able to withdraw $10,000 at the end of Year 1, $20,000 at the end of Year 2 and $30,000 at the end of Year 3, and have nothing left in the account after the last withdrawal (round to the nearest dollar)?

Q: You may use a spreadsheet like Excel to help you find the solution to this question.
How much money would you have to put in the bank today, assuming that the bank account paid interest at the rate of 5% per year, in order to be able to withdraw $10,000 at the end of Year 1, $20,000 at the end of Year 2 and $30,000 at the end of Year 3, and have nothing left in the account after the last withdrawal (round to the nearest dollar)?

or

Q: To assist you in answering this issue, you can utilize a spreadsheet program such as Excel.
In order to withdraw $10,000 at the end of Year 1, $20,000 at the end of Year 2, and $30,000 at the end of Year 3, and to have nothing left in the account after the last withdrawal (rounded to the nearest dollar), how much money would you need to deposit in the bank today, assuming that the bank account paid interest at the rate of 5% annually?

• $70,125
• None of these are true
• $60,000
• $45,560
• $53,580

Explanation: Use the formula for Present Value: PV=FV(1+r)nPV = \frac{FV}{(1 + r)^n}PV=(1+r)nFV​, where $FV$ is the future cash flow, $r$ is the interest rate, and $n$ is the year.