Tami would like to withdraw $10,364.10 at the end of each year, for 10 years, from an account paying 2.3% comp

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

GPT-5 mini · Answer

Present value of an ordinary annuity:

PV = 10,364.10 * [1 - (1.023)^(-10)] / 0.023

Compute:
(1.023)^10 ≈ 1.25532385, so (1.023)^(-10) ≈ 0.796607
Factor = [1 - 0.796607] / 0.023 ≈ 8.8430

PV ≈ 10,364.10 * 8.8430 ≈ $91,651.92

Answer: c. $91,651.92

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

All Answers 1

Submit Your Answer

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

All Answers 1

Submit Your Answer

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