How much money do I need to deposit now to withdraw $ 9,000 in 11 yrs. for 8 yrs, At 6% interest rate, Plus additional 18,000 the last year?

Question

Deposit today____?, so that at the beginning of 11 yrs from now I can withdraw $9,000 a year for the next 8 yrs. (periods 11-18), plus an additional 18,000 in last year (period 18)? Assume interest rate of 6%.

Answer 1

I used the present value (PV) of the annuity formula for annual payments of $9000 per year for 8 years (considering annuity due means the payment is taken at the start of each year). For the last payment of $18,000 i simply calculated the PV @6%.

 

The answer i got is $58,900. 

 

I can explain in detail the formulas if you need.