I think that the question is written poorly.

5. Assuming a 6% interest rate, how much would Danielle have to invest now to be able to withdraw $10,000 at the end of each year for the next nine years.

I came up with $166,667 using the compound interest formula assuming that n=12, t=9.

2 answers

it should be clear that your answer is way off, since only $90,000 is being withdrawn over the life of the investment.

So, less than $90K will have to be invested, since the money in the fund will be earning interest. Check your formula for the present value of an annuity to get the answer.
I got 68016.92
Similar Questions
  1. The following research question is poorly written:"Will students learn to drive better if they wait until they are 18?" What
    1. answers icon 1 answer
  2. Question 3Investment analysts generally believe the interest rate on bonds is inversely related to the prime interest rate for
    1. answers icon 0 answers
    1. answers icon 1 answer
    1. answers icon 2 answers
more similar questions