Solve the application problem. Round to the nearest cent.
-Find the least amount that could be deposited in a bank account today at 4% compounded quarterly to allow $650 withdrawals at the end of each quarter for 6 years.

Question

Solve the application problem. Round to the nearest cent. 
-Find the least amount that could be deposited in a bank account today at 4% compounded quarterly to allow $650 withdrawals at the end of each quarter for 6 years.

Quizplus · Accepted Answer

The present value of an annuity formula is used to calculate the least amount needed. The formula considers the quarterly interest rate (1%), the number of periods (24), and the quarterly withdrawal amount ($650). The calculation results in approximately $13,808.20.

Solve the Application Problem