(Ignore Income Taxes in This Problem

Multiple Choice

(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