What amount does a lottery winner have to pay into a savings account with an interest rate of 3.9% pa and then be able to withdraw 48,000 € for 25 years at the end of the year?
How much € should the amount be? (To the cent exactly)
withdraw 48000 at the end of every year of 25 years. Interest = 0.039

\(PV=48000*\frac{1-1.039^{-25}}{0.039}\)
48000*((1-1.039^-25)/0.039) = 757 848.95
sensible check: 25*48000 = 1 200 000 answer sounds ok.
So that is 757 848.95 euros