Janet's parents want her to go to the same college that they did. They decided to pay a lump sum payment today of $94000 so she will be able to make 6 years of semiannual withdrawals. The college provide an annuity of 5%, compounded semiannual. If Janet will make her first withdrawal in 9 years, what is the size of each withdrawal?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Janet's parents want her to go to the same college that they did. They decided to pay a lump sum payment today of $94000 so she will be able to make 6 years of semiannual withdrawals. The college provide an annuity of 5%, compounded semiannual. If Janet will make her first withdrawal in 9 years, what is the size of each withdrawal?
Lump sum payment(P) is $94000
Rate of interest(R) is 5% compounded semiannual
Time(T) in which she makes her first withdrawal is 9 years
We have to find the amount(A) after 9 years.
= 94000 . . . [ As rate given for semiannual , so we T becomes 18 ]
= 94000
= 94000
= $226222.207967
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