(present value tables required) income from an apartment building you own totals $260,000 per year. you plan on selling the building and retiring to france in 12 years. assuming you can invest the income from the building each year at 3%, how much money will you have on which to retire?

$2,591,420

Explanation: This investment is an annuity, a type of investment that adds an annual cashflow to the existing amount.

The formula for calculating annuities is:

    Present Value = Cashflows X  

Annual Cashflow = $260,000

                           r = 3% or 0.03

                           n = 12 years

Using a present value table, look at the value under the 3% column and in front of the Period 12 row.

This value is 0.701 and the value of   in the above equation.

PV = $260,000 X

PV = $260,000 X 9.967

$2,591,420

the answer is i don't know