question archive Suppose that En
Suppose that En
Subject:FinancePrice:2.86 Bought3
Suppose that En. Sazali deposits his RM14,500 bonus in an account that earns an annual rate of 7.5%, compounded quarterly, and makes additional deposits of RM400 at the end of each quarter for the next 21.5 years, until he retires. To supplement his retirement, En. Sazali wants to make withdrawals at the end of each quarter for the next 14 years. What is the total amount withdrawn? Assume the interest rate remains the same during En. Sazali's retirement. Round your answer to the nearest cent.
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Present Value of quarterly deposits=400/(7.5%/4)*(1-1/(1+7.5%/4)^(4*21.5))=17015.7249438103
Total Present Value=(14500+17015.7249438103)=31515.7249
Total Future Value=31515.7249*(1+7.5%/4)^(4*21.5)=155719.417976727
Quarterly Withdrawals=155719.417976727*(7.5%/4)/(1-1/(1+7.5%/4)^(4*14))
=4515.2228
