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Francisco Javier Clouthier
on Dec 14, 2024

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Andy deposits $40,000 into an account earning 6.6% compounded annually for 5 years. After this time, Andy wishes to withdraw $2,814.41 at the end of each quarter and have $10,000 remaining. Determine the number of withdrawals Andy can make.

A) 20 withdrawals
B) 24 withdrawals
C) 28 withdrawals
D) 32 withdrawals
E) 36 withdrawals

Compounded Annually

A method where interest is calculated once per year and added to the principal sum.

Withdrawals

The act of removing funds from a bank or investment account.

  • Compute the extent of standard distributions or dues possible from a financial asset or credit.
  • Understand the effect that different compounding frequencies (monthly, quarterly, semi-annually, and annually) have on both the future value and payments.
  • Grasp the essential elements of computing the time value of money.
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Mariya ShayevskyDec 19, 2024
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