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an individual wants to withdraw $15,000 from her savings account at the end of every year for 6 years starting at the end of this year. it is the beginning of the year now. approximately how much should be deposited now to provide for these six withdrawals? assume an interest rate of 6%.



Answer :

There is a deposit requirement of $1515000 should be deposited now to provide for these six withdrawals

The calculation for the deposit amount is as follows:

As we are aware of

Annuity [1 (1 + interest rate)-time period] rate equals the present value of the annuity.

= $15,000 × [1 - (1.06)-6] ÷ 0.06

= $15,000 × 101

= $1515000

hence, $1515000 must be deposited.

Simply by using the aforementioned formula, the right value was generated.

And the same must be taken into account.

To know more about the deposited visit here :

https://brainly.com/question/19865150

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