If $25, 000 is invested into an account paying 4.5% per year, compounded quarterly, how much money can be withdrawn from the acc

Question

2 years ago

11

ount every two months for the next 6 years?

1 answer:

pogonyaev · Answer 1 · 2023-07-01T01:14:15+03:00

The money can be withdrawn from the account every two months for the next 6 years is $20, 625, 000

<h3>What is compound interest?</h3>

The formula for compound interest is given as;

$A = P ( 1 + \frac{r}{n} )^n^t$

P = principal interest = $25, 000

r = rate = 4. 5%

n = 2 months

t = 6 years

A = $25, 000 ( 1 + \frac{4. 5}{2} )^2 ^*^6$

A = $25, 000(1 + 0. 75)^1^2$

A = $25, 000( 825. 00)$

A = $20, 625, 000

Thus, the money can be withdrawn from the account every two months for the next 6 years is $20, 625, 000

Learn more about compound interest here:

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