An amount, P, must be invested now to allow withdrawals of $1,200 per year for the next 14 years and to permit $300 to be withdrawn starting at the end of year 5 and continuing over the remainder of the 14-year period as the $300 increases by 5% per year thereafter. That is, the withdrawal at EOY six will be $315.00, $330.75 at EOY seven, and so forth for the remaining years. The interest rate is 12% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 5% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 12% per year. The P amount is $ (Round to the nearest dollar.) ...

Fig: 1