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9. You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar.Regular withdrawal:$4500Interest rate:4.5%FrequencyquarterlyTime:24 yearsAccount balance: $

9 You Want To Be Able To Withdraw The Specified Amount Periodically From A Payout Annuity With The Given Terms Find How Much The Account Needs To Hold To Make T class=

Answer :

For P = 4500, r = 0.045 and n = 96, we have:

[tex]\frac{P\lbrack1-(1+r)^{-n}\rbrack}{r}=\frac{4500\lbrack(1-(1+0.045)^{-96})\rbrack}{0.045}=98538[/tex]

Therefore, the account needs to hold $98,538 to make this possible.

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