Solved:
Answered by AI, Verified by Human Experts
Determine the amount needed such that when it comes time for retirement, an individual can make semiannual withdrawals in the amount of $15,265 for 35 years from an account paying 4. 5% compounded semiannually. Round your answer to the nearest cent. A. $938,272. 00 b. $941,790. 00 c. $535,528. 03 d. $547,577. 41 Please select the best answer from the choices provided A B C D.
Determine the amount needed such that when it comes time for retirement, an individual can make semiannual withdrawals in the amount of $15,265 for 35 years from an account paying 4. 5% compounded semiannually. Round your answer to the nearest cent. A. $938,272. 00 b. $941,790. 00 c. $535,528. 03 d. $547,577. 41 Please select the best answer from the choices provided A B C D.
Final answer:The amount needed for retirement is approximately $938,272.00. Option A is correct.Explanation:To determine the amount needed for retirement, we can use the formula for the future value of anannuity:Future Value= (Payment amount / Semiannual Interest Rate) * (1 - (1 + Semiannual Interest Rate)^(-Total number of withdrawals))Plugging in the given values, we get:Future Value = ($15,265 / 0.045) * (1 - (1 + 0.045)^(-35 * 2))Solving this equation, we find that the amount needed is approximately $938,272.00.Learn more about Retirement savings here:brainly.com/question/31613492#SPJ11...
Unlock full access for 72 hours, watch your grades skyrocket.
For just $0.99 cents, get access to the powerful quizwhiz chrome extension that automatically solves your homework using AI. Subscription renews at $5.99/week.