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.