Solve the problem.
-Gretta wants to retire in 13 years. At that time she wants to be able to withdraw $\$ 12,500$ at the end of each 6 months for 13 years. Assume that money can be deposited at $12 \%$ per year compounded semiannually. What exact amount will Gretta need in 13 years?
A) $\$ 162,539.63$
B) $\$ 254,127.13$
C) $\$ 159,792.00$
D) $\$ 165,131.63$

Question

Quizplus · Accepted Answer

To find the amount Gretta needs in 13 years, calculate the present value of an annuity using the formula for the present value of an ordinary annuity. The interest rate per period is $6\%$ (since $12\%$ annually compounded semiannually), and the number of periods is $26$ (13 years with 2 periods per year). The correct calculation results in $\$ 162,539.63$.

Solve the Problem $12,500\$ 12,500$12,500 At the End of Each 6 Months for 13 Years

Solve the Problem $\$ 12,500$ At the End of Each 6 Months for 13 Years