Your 65-year-old father is going to retire next year. He would like to

Your 65-year-old father is going to retire next year. He would like to have an income of $20,000 per year for the remainder of his life.

If he is expected to live for ten more years, write an algebraic expression to indicate the amount of money he needs today to pay him this sum of money if the interest rate is 10 percent.

ANSWER

PDV = (20,000/1.1 ) + (20,000/1.12 ) + … + (20, 000/1. 110 )