The amount of money that Gary can withdraw each month is equal to $4026.18.
<u>Given the following data:</u>
- Value of each payment, P = 750,000 dollars.
- Annual percentage interest rate, APR = 5% = 0.05.
<h3>What is APR?</h3>
APR is an acronym for annual percentage rate and it can be defined as a measure of an amount of money based on a yearly rate of interest, which a borrower must pay on a loan or credit card.
This ultimately implies that, the annual percentage rate (APR) would be calculated by dividing the rate of interest by twelve (12).
Rate of interest, r = APR/12
Rate of interest, r = 0.05/12
Rate of interest, r = 0.0041667
Next, we would calculate the present value of this ordinary annuity by using this formula:
Present value, PV = [P ÷ [1 - (1 + r)^{-nt}]/r]
Substituting the given parameters into the formula, we have;
Present value = [750,000 ÷ [(1 - (1 + 0.0041667)^{-30 × 12})/0.0041667]
Present value = [750,000 ÷ [(1 - (1.0041667)^{-360})/0.0041667]
Present value = [750,000 ÷ [(1 - 0.2238239)/0.0041667]
Present value = [750,000 ÷ [0.7761761/0.0041667]
Present value = 750,000 ÷ 186.280773754
Present value, PV = $4026.18.
Read more on present value on annuity here: brainly.com/question/13373662
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