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: How many semi-annual payment periods are there over the term? Do not enter text or characters such as dollar sign and comma. Answer:

Answer 1

Amount (uchen she started journey) = $1,675 Brinciple ( semiamualk withdrome ) = $ 2085. interest 4% 2 Rate of Period per year -0.04 since there are 2 semiannual period in a year) het time (in years) it (her which So, she can withdraw money) total semi annuel beyment period = 2 it Now, we know that a А p (i- (+: %ngonit) > 11,675 2.085 i- (it 0.04/2) - 2+) (0104/2) - 11675 X OVOZ 2085 ( + 0.02) ? -24 -28 -2 {1+ 0.02) (-0.lll930408) (1102) =(0-888009592) In (0i8380og92) In cloa) 599782708 ✓6 Hence, there vse opproximately 6 semiannual periods, 2t CS Scanned with CamScanner

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