David has a bank account which pays interest at the rate of 1.5% per year, compounded annually. Determine what amount David must have in the bank, given that he would like to draw an annual salary of $32,635.15 from his account at the end of each year for 30 years. Round to the nearest cent.

Question

12 January, 23:35

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Answers (2)

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Aubree · Answer 1

32,635.16=x (1.015) ^30

32,635.16 / ((1.015) ^30) = x

20878.7428644=x

David put $20878.74 into his bank account

Cindy Kelley · Answer 2

a.$783,760.48 b.$979,054.50 c.$1,225,080.50 d. $795,516.88

out of those it would be A