You plan on supplementing your income. you would like to withdraw a semiannual salary of $6,951.20 from an account paying 1.75%
interest, compounded semiannually. determine the amount needed in the account such that you can withdraw the needed amount at the end of each period for 15 years. round to the nearest cent.
1 answer:
We are given with the data: A = <span>$6,951.20 per semi-annum that is $13902.4 per annum, i equal to 1.75% compounded semi-annually, and asked for P or the present worth to maintain the withdrawal for 15 years.
the formula to be used is attached in the file (third one). substitute the i = 0.0175, n = 30, A = </span>$13902.4 and get P.
the formula to be used is attached in the file (third one). substitute the i = 0.0175, n = 30, A = </span>$13902.4 and get P.
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Answer:
$280,950
Explanation:
As for the information given:
Closing balance of investment on 31 December 2015 = $440,000
Now the following adjustments need to be made to calculate the balance as on 1 August 2016
Add: Share of income from Jan to Jul 2016 = $4,000 7 months
20% = $5,600
Less: Dividend Received = $20,000 20% = $4,000
Less: Amortization of patent = $6,000/12 7 = $3,500
= $440,000 - $1,900 = $438,100
Since Jabiru sold half of its investment, thus, value of its half of the investment shall be:
$438,100/2 = $219,050
Sale value = $500,000
Thus, gain amount = $500,000 - $219,050 = $280,950