Annual Spending: Calculate the Present Value of an Investment
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The Sultan of Brunei is reportedly the world's richest person, with wealth estimated at $37 billion. How much could the Sultan spend yearly for 40 years if he were to devote the entire $37 billion to leading a life of luxury?
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Assume that his money is invested at 9% interest. The 40 year, 9% annuity factor is 10.76. Thus,
Present Value = annual spending X annuity factor
$37,000,000,000 = annual spending X 10.76
Annual Spending = $3,439,000,000
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