Question

Jody wants to travel at the time when her bank account has $11,675, and she needs to withdraw from her account $2,085 at the end of each six months for the travel expenses while she travels until no fund remains in her account. Jody would like to know for how long (in years) she can withdraw $2,085 from her account at the end of every six months if interest is 4% compounded quarterly. Answer the following question: For how long in years) can she travel? Do not enter text or characters such as dollar sign and comma. Answer:

Answer 1

When Jody wants to travet. her bank account has $11,64 she needs to withdreau from her account at the end of each sin months fore the travel expenses So terce, P= I 11,675 r = 4% = 0.04 1 = opens 4 6 months agr. account in so final amount in her After sine month nt A = P(142) 0.94 ) 11675 (1+ove 142 11675 (1 + 0.01) = 11675 1.08 =$11909 She with draw sine month Remaining a mount after $11989 $ 2045 $4824 = 89824

Now, P= 89648 0.04 na 4 nu A = P(14) 412 9648 (14 004) (1.01)2 = $9842 9648 She 8 2080 with draw After lyre - $2085 a $7757 M amount 8 9842 to remaining . Now P- $7757 4/2 A = Plot :)** 7+57 (1+ 0.0 ) 7757x (1.0132 = $7913 1 2185 she withdraw after lyre 6 month in 7913 - 2085 $5828 Remaing amount it Now, pa $ 5828 35945 5828 x (1.0132 - 82085 She withdraw after a ye 2 yris 5945-2085- $3860 Renaing amount after

Now P = $3860 $ 3937 § 9860 x 11.012 She withdraw after ayr 6 month re SO 8 2085 folgt Remaining amount in $1852 , Now P = P1052. A = 1852 (1.01)2 = $1889 . no amount so there As she withdraw & 2015 acwant after her Hence she can travel syeare long