Evaluate the following expression. 53 Enter the answer
2 answers:
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Answer:
The principal amount necessary to fund is $573.31
Step-by-step explanation:
Given as :
The quarterly withdrawal amount = A = $850
The time period for withdrawals = t = 9 years
The rate of interest = r = 4.4% compounded quarterly
Let The principal amount necessary to fund = $p
Now, <u>From Compound Interest</u>
Amount = Principal ×
Or, $850 = p ×
Or, $850 = p ×
Or, $850 = p ×
Or, $850 = p × 1.4826
∴ p =
i.e p = $573.31
So,The principal amount necessary to fund = p = $573.31
Hence, The principal amount necessary to fund is $573.31 Answer