periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $500,000 Interest rate: 3.45% Frequency quarterly 28 years Time: Periodic Withdraw: $ Enter an integer or decimal number (more..1
periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $500,000 Interest rate: 3.45% Frequency quarterly 28 years Time: Periodic Withdraw: $ Enter an integer or decimal number (more..1
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![You expect to have the given amount in an account with the given terms. Find how much you can withdraw
periodically in order to make the account last the specified amount of time. Round your answer to the
nearest cent.
$500,000
3.45%
Account balance:
Interest rate:
Frequency
quarterly
28 years
Time:
Periodic Withdraw: $
Enter an integer or decimal number [more..]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf32b84d-fefa-47ae-b31f-f90096601c81%2F330339c4-252e-4cef-a15c-ef6b1236cecb%2F20y141_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You expect to have the given amount in an account with the given terms. Find how much you can withdraw
periodically in order to make the account last the specified amount of time. Round your answer to the
nearest cent.
$500,000
3.45%
Account balance:
Interest rate:
Frequency
quarterly
28 years
Time:
Periodic Withdraw: $
Enter an integer or decimal number [more..]
Expert Solution
Step 1
Present value of annuity formula:
where,
PVA = account balance
r = rate of interest
m = frequency
n = no of years
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