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Talja [164]
1 year ago
15

gary has just retired, and has 750000 dollars in his retirement account. the account will earn interest at an annual rate of 5 p

ercent, compounded monthly. at the end of each month, gary will withdraw a fixed amount to cover his living expenses. gary wants his savings to last 30 years. how much money can he withdraw each month
Mathematics
1 answer:
ch4aika [34]1 year ago
7 0

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.
  • Time, t = 30 years.

<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

#SPJ1

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What is the answer to - 2 5/6 + ( - 7/8) divided by 5 1/4
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Conversion a mixed number 2 5/

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to a improper fraction: 2 5/6 = 2 5/

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To find new numerator:

a) Multiply the whole number 2 by the denominator 6. Whole number 2 equally 2 * 6/

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= -17/

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Conversion a mixed number 5 1/

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to a improper fraction: 5 1/4 = 5 1/

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= 5 · 4 + 1/

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= 20 + 1/

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= 21/

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To find new numerator:

a) Multiply the whole number 5 by the denominator 4. Whole number 5 equally 5 * 4/

4

= 20/

4

b) Add the answer from previous step 20 to the numerator 1. New numerator is 20 + 1 = 21

c) Write a previous answer (new numerator 21) over the denominator 4.

Five and one quarter is twenty-one quarters

Divide: -7/

8

: 21/

4

= -7/

8

· 4/

21

= -7 · 4/

8 · 21

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168

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= -1/

6

Dividing two fractions is the same as multiplying the first fraction by the reciprocal value of the second fraction. The first sub-step is to find the reciprocal (reverse the numerator and denominator, reciprocal of 21/

4

is 4/

21

) of the second fraction. Next, multiply the two numerators. Then, multiply the two denominators. In the next intermediate step, the fraction result cannot be further simplified by canceling.

In words - minus seven eighths divided by twenty-one quarters = minus one sixth.

Add: the result of step No. 2 + the result of step No. 4 = -17/

6

+ (-1/

6

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= -18/

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= 6 · -3/

6 · 1

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For adding, subtracting, and comparing fractions, it is suitable to adjust both fractions to a common (equal, identical) denominator. The common denominator you can calculate as the least common multiple of both denominators - LCM(6, 6) = 6. In practice, it is enough to find the common denominator (not necessarily the lowest) by multiplying the denominators: 6 × 6 = 36.

In words - minus seventeen sixths plus minus one sixth = minus three.

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