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 14 years. Assume that money can be deposited at 6% per year compounded semiannually. What
Exact amount will Gretta need in 13 years?
A) $239,855.63
B) $229,087.88
C) $234,551.37
D) $598,782.00

Question

Quizplus · Accepted Answer

The future value of the annuity can be calculated using the formula for the present value of an annuity. The correct amount needed in 13 years is $234,551.37.

Gretta Wants to Retire in 13 Years