Asked by yo

Determine the amount needed such that when it comes time for retirement, an individual can make semiannual withdrawals in the amount of $15,265 for 35 years from an account paying 4.5% compounded semiannually. Round your answer to the nearest cent.
a.
$938,272.00
b.
$941,790.00
c.
$535,528.03
d.
$547,577.41



Please select the best answer from the choices provided


A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
Use the present value of an ordinary annuity.

i = 0.045/2 = 0.0225, n = 35*2 = 70, PMT = 15,265.

PV = PMT * (1 - (1+i)^(-n)) / i
= 15,265 * (1 - (1.0225)^(-70)) / 0.0225
≈ $535,528.03

Answer: C.