QuestionFind the deposit needed today to withdraw \$500 annually for 5 years from an account earning 5%. Round to 2 decimal places.

Studdy Solution
Finally, calculate the amount to be deposited today.
$$PV = \$500 \times0.216 /0.05 = \$2160$$The person would have to deposit $2160 today to be able to take out$500 a year for5 years from an account earning5 percent.