You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar.

You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

You want to be able to withdraw the
specified amount periodically from a
payout annuity with the given terms. Find
how much the account needs to hold to
make this possible. Round your answer to
the nearest dollar.
Regular withdrawal: $1500
Interest rate:
Frequency
Time:
2.5%
quarterly
24 years

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