Find the present value of the annuity necessary to fund the withdrawal of $600 per month for 10 years, if the annuity earns 2% per year and if there is to be $10,000 to be left in the annuity at the end of the 10 years. (Assume end-of-period withdrawal and compounding at the same intervals as withdrawal. Round your answer to the nearest ten cents.)

Answer 1

i = .02/12 = .0016666667
n= 120

PV = 600[ 1 - 1.001666667^-120]/.00166667 + 10000(1.00166667)^-120
= .....

I got 73 396.55, let me know if you did not get that.