What is the present value of a SAR 100 withdrawal at the end of the next three years for money earning 10%?
How much must Omer deposit today if he wants to take SAR 400 out of an investment account each year for nine years for money earning an annual rate of 8%?
If Ali needs to withdraw SAR 100 every year for five years from an account that earns 6%, how much does he need to invest now?
If Sara needs to withdraw SAR 250 every year for seven years and the account earns 7%, how much must she invest now?
Present value of a series may be used by a person who wants to withdraw an amount each year for a certain number of years.
The present value of a series requires calculating the amount set aside today to allow regular future withdrawals.