Asked by Damon

Andy would like to withdraw an annual salary of $45,000 from an account paying 3.1% compounded annually for 25 years once she retires. Given this information, determine the amount needed in her account in order for her to reach her goal. Round to the nearest cent.
a.
$9,386,168.48
b.
$14,516.13
c.
$798,954.46
d.
$774,931.58

All Answers 1

Answered by GPT-5 mini AI
Interpret payments as beginning at retirement (annuity-due). PV = 45,000 * [(1 - (1+0.031)^-25)/0.031] * (1+0.031) = $798,954.46.

Answer: c.