How much must be deposited on January 1, 2019 in a savings account paying 5.5% annually in order to make annual withdrawals of $40,000 at the end of the years 2019 and 2020?
Compute the present value of an ordinary annuity
Enter the known variables.
The payment, PMT, is -$40,000.
The rate is 5.5%.
The number of periods, NPER, is 2.
We go to the Formulas tab and look for the PV function.