(Appendix 8A)(Ignore Income Taxes in This Problem

Multiple Choice

(Appendix 8A) (Ignore income taxes in this problem. ) Assume you can invest money at a 14% rate of return.How much money must be invested now in order to be able to withdraw $5, 000 from this investment at the end of each year for 8 years, the first withdrawal occurring one year from now?

A) $24, 840
B) $23, 195
C) $21, 440
D) $1, 755