Question

An account paying 4.6% interest compounded quarterly has a balance of $506,732.32. Determine the amount that can be withdrawn quarterly from the account for 20 years, assuming ordinary annuity.

Answer 1

Answer:

$4842295538

Step-by-step explanation:

Amount after 20 yrs

A = p(1 + r/n)^tn

A= 506,732.32(1+(0.46/60))^ (20*60)

A = 506,732.32(1+(7.667*10^-3))^ (1200)

A = 506,732.32(1.0076667)^(1200)

A = 506,732.32*9555.924

A = 4842295538

Answer 2

Answer:

a. $9,722.36

Step-by-step explanation:

I got 100% on the test :)