You plan on supplementing your income. you would like to withdraw a monthly salary of $1,205.78 from an account paying 5.5% interest, compounded monthly. determine the amount needed in the account such that you can withdraw the needed amount at the end of each month for 5 years. round to the nearest cent.
a. $83,055.12
b. $63,415.33
c. $72,346.00
d. $63,126.00

Option d - $63,126.00

Step-by-step explanation:

Given : You would like to withdraw a monthly salary of $1,205.78 from an account paying 5.5% interest, compounded monthly.

To find : Determine the amount needed in the account such that you can withdraw the needed amount at the end of each month for 5 years?

Solution :

Applying formula of monthly payment ,

Monthly payment,  

Discount factor  

Where, Amount = ?

Monthly payment = $1205.78

Rate r= 5.5%=0.055  

Time = 5 years  

Now, put all the values we get,  

Substitute the value in the formula,

Therefore, Option d is correct.

The amount needed in the account is $63,126.00

2 x t divided by n

step-by-step explanation: