Question

For the last 10 years, Megan has made regular semiannual payments of $1,624.13 into an account paying 1.5% interest, compounded semiannually. If, at the end of the 10 year period, Megan stops making deposits, transfers the balance to an account paying 2.3% interest compounded monthly, and withdraws a monthly salary for 5 years from the new account, determine the amount that she will receive per month. Round to the nearest cent. a. $616.39 b. $615.21 c. $39,079.25 d. $39,154.16

Answer 1

Megan would receive $616.39 per month.

Step-by-step explanation:

Megan has made regular semiannual payments of $1,624.13 into an account paying 1.5% interest compounded semiannually.

To calculate Future Value (FV) we will use the formula :

$FV=pmt\times \frac{(1+R)^{n})-1}{R}$

Where,

compounded semiannually for 10 years  (n) = 20

Megan  has made semiannual payments (PMT) = $1624.13

rate of interest = 1.5% (APR) = $\frac{1.5}{200}$ = 0.0075

Now put the values into formula :

$FV=1624.13\times \frac{(1+0.0075)^{20}-1}{0.0075}$

=  $1624.13\times \frac{(1.0075)^{20}-1}{0.0075}$

= $1624.13\times \frac{0.16118414}{0.0075}$

= 1624.13 × 21.4912187

= $34904.53

Megan received $34904.53 after 10 years.

she transfers the balance to an account paying 2.3% interest compounded monthly and withdraws a monthly salary for 5 years from the new account.

we use the formula :

$PV=pmt\times \frac{1-(1+R)^{-n}}{R}$

Present value (PV) of the account = $34904.53

compounded monthly for 5 years (n) = 12 × 5 = 60

r = 2.3% APR = $\frac{2.3}{1200}$ = 0.001916667

Now put the values into the formula :

$34904.53=pmt\times \frac{1-(1+0.001916667)^{-60}}{0.001916667}$

34904.53 = pmt × 56.627342

$pmt=\frac{34904.53}{56.627342}$

pmt = 616.390046 ≈ $616.39

Megan would receive $616.39 per month.

Learn more about compound interest : https://brainly.in/question/3001024

Answer 2

Answer:

its a

Step-by-step explanation:

just took the test