Al Vincent has decided to retire to Arizona in 12 years. What amount should Al invest today so that he will be able to withdraw $27,500 at the end of each year for 17 years after he retires? Assume he can invest the money at 7% interest compounded annually. (Use the Table 13.2 and Table 12.3.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

TABLE 13-2 Present value of an annuity of $1 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% Period 1 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.8929 0.8850 0.9804 1.9416 1.9135 1.8594 1.7833 1.7591 1.7355 1.6901 2 3 1.8334 2.6730 1.8861 2.7751 3.6299 1.8080 2.6243 1.6681 2.3612 2.8839 2.7232 2.5771 2.5313 2.4869 2.8286 3.7171 2.4018 0.9009 1.7125 2.4437 3.1024 3.6959 4.2305 4 3.8077 3.5459 3.3872 3.3121 3.2397 3.1699 3.0373 2.97 45 3.4651 4.2124 5 4.7 134 4.3295 4.1002 3.9927 4.5797 5.4172 4.4518 5.2421 3.8897 4.4859 3.7908 4.3553 3.6048 4.1114 3.5172 3.9975 6 5.6014 5.0757 4.9173 4.7665 4.6229 7 6.4720 6.0021 5.7864 5.5824 5.2064 5.0330 4.8684 4.5638 4.4226 6.2303 7.0197 5.3893 5.97 13 4.7122 5.1461 8 7.3255 6.7327 6.4632 6.2098 5.7466 5.5348 5.3349 4.9676 4.7988 9 7.1078 6.2469 5.5370 8.1622 8.9826 7.7861 8.5302 7.4353 8.1109 6.8017 7.3601 6.5152 7.0236 5.7590 6.1446 5.9952 6.4177 6.8052 5.3282 5.6502 5.1317 5.4262 10 7.7217 5.8892 11 9.7868 9.2526 8.7605 8.3064 7.8869 7.4987 6.4951 6.2065 5.9377 6.7101 7.1390 7.5361 7.9038 5.6869 5.9176 12 8.8632 6.8137 6.4924 10.5753 11.3483 9.9540 10.6350 9.3851 9.9856 8.3838 8.8527 7.9427 8.3576 7.1607 7.4869 6.1944 6.4235 13 9.3936 7.1034 6.1218 14 12.1062 11.2961 10.5631 9.8986 9.2950 8.7455 8.2442 7.7862 7.3667 6.6282 6.3025 6.7499 6.9819 7.1909 7.3792 15 8.5595 7.6061 6.8109 6,4624 12.8492 13.5777 11.9379 12.5611 11.1184 11.6523 10.3796 10.8378 9.7 122 10.1059 9.1079 9.4466 8.0607 8.3126 16 8.8514 7.8237 6.9740 6.6039 17 13.1661 12.1657 10.4773 9.7632 9.1216 8.5436 8.0216 7.5488 7.1196 6.7291 14.2918 14.9920 11.2741 11.6896 18 13.7535 12.6593 10.8276 10.0591 9.3719 8.7556 8.2014 7.7016 7.2497 6.8399 19 15,6784 14.3238 13.1339 12.0853 11.1581 10.3356 9.6036 8.9501 8.3649 7.8393 7.3658 6.9380 7.0248 20 16.3514 14.8775 13.5903 12.4622 11.4699 10.5940 9.8181 9.1285 7.4694 8.5136 9.0770 7.9633 8.4217 25 19.5234 17.4131 15.6221 14.0939 12.7834 10.6748 9.8226 7.8431 11.6536 12.4090 7.3300 7.4957 30 22.3964 19.6004 15.3724 11.2578 8.6938 8.0552 17.2920 19.7928 13.7648 15.0463 10.2737 10.7574 9.4269 9.7790 40 27.3554 23.1148 13.3317 11.9246 8.2438 7.6344 17.1591 18.2559 8.9511 9.0417 50 31.4236 25.7298 21.4822 15.7619 13.8007 12.2335 10.9617 9.9148 8.3045 7.6752 TABLE 12.3 Present value of $1 at end of period 2% 3% 4% 5% 6% 7% 9% 10% Period 1 2 1% 9901 9803 9091 9804 9612 9524 9070 9434 .8900 .8264 w N 9706 11% 9852 9707 9563 9422 9283 9145 9709 9426 9151 .8885 .8626 8638 9423 9238 7513 9615 9246 8890 -8548 -8219 7903 9346 8734 8163 -7629 7130 .6663 4 9174 8417 7722 .7084 6499 5963 .8227 8396 .7921 7473 -7050 6830 8% 9259 .8573 17938 7350 6806 .6302 -5835 5403 5002 9610 9515 9420 LO 9057 7835 6209 6 .8880 8375 7462 5645 7 9327 9010 8706 8131 1.7599 .7107 6651 6227 5470 5132 8 -8877 8535 67 68 5820 5019 4665 9235 9143 7894 7664 1.7307 7026 -6274 5919 9 .8746 8368 .6446 5439 4604 4241 10 .9053 .8617 .8203 .7441 .6756 .6139 .5584 5083 4632 4224 .3855 11 8963 8489 8043 7224 6496 5847 5268 4751 4289 3875 3505 12 .8874 8364 .7885 7014 5568 4970 4440 3555 3186 6246 -6006 3971 3677 13 .8787 .8240 7730 .6810 5303 4688 4150 .3262 2897 14 .8700 .8119 .7579 .6611 5775 .5051 4423 .3878 3405 2992 2633 15 8613 7999 7430 .6419 5553 .4810 3624 2745 2394 3152 2919 16 .8528 .7880 -7284 -5339 4581 4173 3936 3714 3387 6232 .6050 2176 2519 2311 17 .8444 .7764 .7142 5134 4363 3166 2703 1978 18 8360 .7649 .7002 5874 4155 3503 2959 2502 -1799 4936 4746 2120 1945 19 8277 .7536 .6864 5703 3957 2765 2317 .1635 -3305 3118 20 8195 7425 .6730 4564 -3769 2584 2145 1784 1486 21 .8114 -7315 .6598 -5537 -5375 5219 4388 3589 2942 2415 -1987 1637 1351 22 8034 .6468 4220 2775 2257 1839 21502 1228 3418 3256 23 .7207 .7100 6995 7954 .6342 5067 4057 2618 2109 1703 1378 1117 24 -7876 .6217 4919 3901 3101 2470 1971 1577 1264 1015 25 .7798 .6892 .6095 4776 3751 2953 2330 .1842 .1460 11160 .0923 26 7720 6790 4637 .3607 2812 2198 -.1722 .1352 -1064 0839 5976 5859 27 .7644 .6690 4502 3468 2678 2074 .1609 1252 10976 0763 28 -7568 .6591 5744 4371 3335 2551 1956 1504 0895 0693 29 7493 .6494 4243 3207 .1846 .1406 .0822 1159 .1073 0994 .5631 5521 .0630 2429 2314 30 4120 3083 1741 1314 _0754 .0573 -7419 7059 .6398 5939 35 3554 2534 1813 1301 0937 .0676 0490 0356 5000 4529 40 6717 5513 3066 2083 1420 0972 0668 0460 0318 0221 Note: For more detailed tables, see your booklet, the Business Moth Handbook