Answer:
the maximum amount is $126,564.73
Explanation:
The computation of the maximum amount that should be invested at time zero is shown below:
The Present value of the annuity is
= Annuity × [1 - (1 + interest rate)^-time period] ÷ rate
= $50,000 × [1 - (1.09)^-3] ÷ 0.09
= $50,000 × 2.531294666
= $126,564.73
hence, the maximum amount is $126,564.73
We simply applied the above formula so that the correct value could come
And, the same is to be considered
