Need help with this thanks. I don’t understand how the answer was gotten.

Calculator: Texas BA II Plus

Mode: END (Ordinary Annuity)

Step 1) Compute the PV of the withdrawals & ending balance at Year 14

N = 20

I/Y = 7

PMT = 50,000 (Withdrawal amount)

FV = 100,000 (Remaining balance in the account at the end)

[CPT] [PV] -555,542.6126 (PV at the end of Year 14, as this is based on END mode)

Then, discount the amount to T = 0

\frac{555,542.6126}{1.07^{14}} = 215,449

=============================

ALTERNATIVE:

[CF]

CFo = 0

C01 = 0

F01 = 14

C02 = 50,000 (withdrawal for 19 times)

F02 = 19

C03 = 150,000 (last withdrawal + ending amount)

F03 = 1

[NPV] I = 7

[CPT] 215,449

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Thank you so much.

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