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irakobra [83]
2 years ago
7

Select the correct answer.

Mathematics
2 answers:
laiz [17]2 years ago
6 0
I Think The answer is c I hope it helps My friend Message Me if I’m wrong and I’ll change My answer and fix it for you
Alchen [17]2 years ago
5 0

Answer:

0.10

Step-by-step explanation:

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8. Loren already knows that he will have $500,000 when he retires. If he sets up a payout
Ulleksa [173]

The annuity could provide $221.19 each month

Step-by-step explanation:

The ANNUITY FORMULA is P_{t}=\frac{d[(1+\frac{r}{n})^{nt}-1]}{\frac{r}{n}} , where

1. P_{t} is the balance in the account after t years

2. d is the regular deposit (the amount you deposit each year or month

    or .........)

3. r is the annual interest rate in decimal

4. n is the number of compounding periods in one year

5. t the number of years

∵ Loren knows that he will have $500,000 when he retires

∴ P_{t} = $500,000

∵ he sets up a payout  annuity for 30 years in an account paying 10%

  interest

∴ t = 30 years

∴ r = (10/100) = 0.1

∵ The annuity  could provide each month

∴ n = 12

Substitute the values above in the formula

∴ 500,000=\frac{d[(1+\frac{0.1}{12})^{(12)(30)}-1]}{\frac{0.1}{12}}

∴ 500,000=\frac{d[(1.00833333)^{360}-1]}{0.00833333}

∴ 500,000 = d [2260.487925]

- Divide both sides by 2260.487925

∴ d = $221.19

The annuity could provide $221.19 each month

Learn more:

You can learn more about deposit in brainly.com/question/8782252

#LearnwithBrainly

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