Your grandparents are talking about their retirement in a year. they told you that they should have enough in their retirement funds to pull $50,000 a year for 20 years, starting one year from today. if the discount rate is 5 percent, how much should they have in their retirement account now? round to the nearest cent. do not include any unit (if your answer is $111.11, then type 111.11 without $ sign.)

Present value of annuity = 623,110.5  

Explanation:

To determine present value of annuity of $50,000.

Annuity is fixed series of cash flows for a definite time period.

present value of money at the time retirement is

Present value of annuity =

where,

n of year of payment left to receive

r =rate of interest

Present value of annuity =

Present value of annuity = 50,000 * 12.46221

Present value of annuity = 623,110.5  

answer; specific performance;

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;