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31 December, 04:21

Determine the amount needed such that when it comes time for retirement, an individual can make monthly withdraws in the amount of $2,154 for 30 years from an account paying 5.1% compounded monthly. Round your answer to the nearest cent.

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  1. 31 December, 04:35
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    The correct answer is a
  2. 31 December, 04:46
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    The amount needed such that when it comes time for retirement is $1,826,201. This problem can be solved using the future value of an annuity formula by calculating the sum of a series payment through a specific amount of time. The formula of the future value of an annuity is FV = C * (((1+i) ^n - 1) / i), where FV is the future value, C is the payment for each period, n is the period of time, and i is the interest rate. The interest rate used in the calculation is 5.1%/12 and the period of time used in the calculation is 30*12 because the basis of the return is a monthly payment.

    Calculation : FV = $2,154 * (((1 + (5.1%/12) ^ (30*12) - 1) / (5.1%/12))
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Home » Business » Determine the amount needed such that when it comes time for retirement, an individual can make monthly withdraws in the amount of $2,154 for 30 years from an account paying 5.1% compounded monthly. Round your answer to the nearest cent.
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