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    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?

    © BrainMass Inc. brainmass.com December 24, 2021, 4:43 pm ad1c9bdddf
    https://brainmass.com/business/accounting/annual-spending-calculate-present-cost-investment-3982

    SOLUTION This solution is FREE courtesy of BrainMass!

    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

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 4:43 pm ad1c9bdddf>
    https://brainmass.com/business/accounting/annual-spending-calculate-present-cost-investment-3982

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