Question

Tami would like to withdraw $10,364.10 at the end of each year, for 10 years, from an account paying 2.3% compounded annually. Determine the amount needed in the account for Tami to do this. Round to the nearest cent. a. $115,052.98 b. $103,641.00 c. $91,651.92 d. $93,759.91 Please select the best answer from the choices provided A B C D

Answer 1

Answer:

Answer:

Option c -$91,651.92

Step-by-step explanation:

Given : Tami would like to withdraw $10,364.10 at the end of each year, for 10 years, from an account paying 2.3% compounded annually.

To find : Determine the amount needed in the account for Tami to do this.    

Solution :

We apply the present value formula to get the amount,

     

Where, PV is the present value ,the required amount

P is the principal P=$10,364.10

r is the rate r=2.3% annually, r=0.023

n is the time n=10 years

Substitute in the formula,

   

   

   

   

     

     

Therefore, The amount needed is $91651.92.

Hence, Option c is correct.

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Step-by-step explanation: