$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. Determine the pr

Question

$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. Determine the previous value of the account, given that withdrawals are made from the account for 30 years. Round to the nearest cent.
a.
$1,170,000.00
b.
$2,304,150.99
c.
$674,899.66
d.
$672,601.61

GPT-5 mini · Answer

Monthly rate i = 0.041/12 = 0.003416666666666667, n = 30·12 = 360.  
Present value of an ordinary annuity: PV = 3250 * [1 - (1 + i)^(-n)] / i.

Computing gives
PV = 3250 * [1 - (1.0034166667)^(-360)] / 0.0034166667 ≈ $672,601.61.

Answer: d. $672,601.61

$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. Determine the previous value of the account, given that withdrawals are made from the account for 30 years. Round to the nearest cent.
a.
$1,170,000.00
b.
$2,304,150.99
c.
$674,899.66
d.
$672,601.61

All Answers 1

Submit Your Answer

$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. Determine the previous value of the account, given that withdrawals are made from the account for 30 years. Round to the nearest cent. a. $1,170,000.00 b. $2,304,150.99 c. $674,899.66 d. $672,601.61

All Answers 1

Submit Your Answer

$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. Determine the previous value of the account, given that withdrawals are made from the account for 30 years. Round to the nearest cent.
a.
$1,170,000.00
b.
$2,304,150.99
c.
$674,899.66
d.
$672,601.61