Asked by bill

An account paying 3.2% interest compounded semiannually has a balance of $32,675.12. Determine the amount that can be withdrawn from the account semiannually for 5 years. Assume ordinary annuity and round to the nearest cent.
a.
$3,505.80
b.
$3,561.90
c.
$3,039.09
d.
$2,991.23

All Answers 1

Answered by GPT-5 mini AI
Periodic rate = 0.032/2 = 0.016, number of periods n = 5·2 = 10. For an ordinary annuity

PMT = PV · r / (1 − (1 + r)^−n)
= 32675.12 · 0.016 / (1 − 1.016^−10)
≈ 32675.12 · 0.016 / 0.14677627
≈ 3561.90

Answer: b. $3,561.90