The question is incomplete. The complete question is :
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 $ 2200
Interest rate 2%
Frequency Monthly
Time 20 years
Solution :
Given :
Monthly withdrawal = $ 2200
Interest rate = 2%
Frequency = monthly
Time = 20 years
= 20 x 12 = 240 months
Formula used :
![$w=\frac{[PZ^{r-1}(Z-1)]}{[Z^Y-1]}$](https://tex.z-dn.net/?f=%24w%3D%5Cfrac%7B%5BPZ%5E%7Br-1%7D%28Z-1%29%5D%7D%7B%5BZ%5EY-1%5D%7D%24)
with Z = 1 + r
where, w = monthly withdrawal
P = principal amount
r = monthly interest rate
Y = Number of months
So, w = 2200
r = 2% = 0.02
Z = 1 + r
= 1 + 0.02 = 1.02
Y = 240
Therefore,
= 111,231829
≈ 111,232 (rounding off)
Thus, the account balance = $ 111,232
Answer:
a. flow of costs.
Explanation:
job order costing system is used mainy by companies that make small quantities of distinct products or performs unique services that sticks to specifications as design by the purchaser.
Answer:
option 2
Explanation:
to determine the better option, calculate the present value of option 2. The more suitable option is the option with the higher present value
Present value is the sum of discounted cash flows
Present value = future value / ( 1 + r)^n
r = interest rate
n = number of years
6500 / ( 1.08^3) = 5159.91
the present value of option 2 is higher than that of option 1,, so pick option 2
Honestly i have no idea but you could download an app called math wizard and it will show you how to work it out and give you the answer.
