Answer:
Quarterly Payments = R=$45,046.66
Explanation:
55.498
Accumulated Amount At retirement = $3,500,000
Amount to be left for CSO = $1,000,000
Net Cash That Can be utilized = $2,500,000
Quarterly Payments = ?
Total Quarterly Payments = 30*4 = 120
Interest Annual = 6% = 6/4 = 1.5% Quarterly
Present Amount =$2,500,000
We will solve it by by annuity Formula i.e P=R(1-(1+i)^-n)/i
So We have= 2,500,000=R(1-(1+1.5%)^-120)/1.5%
= 2,500,000=R(1-0.167)/1.5%
=2,500,000=R* 0.8325/1.5% =
=2,500,000=R* 55.498 =
R=2,500,000/55.498
R=$45,046.66
most Quarterly payment that can be with drawl is R=$45,046.66/-
