For the last 20 years, terry has made regular quarterly payments in the amount of $308 into an account paying 1.5% compounded quarterly. if, at the end of the 20 year period, terry stops making deposits, transfers the balance to an account paying 5.5% interest compounded annually, and withdraws a annual salary from the account, determine the amount that he will receive every year for 10 years. round to the nearest cent.

a. $28,672.88

b. $3,803.97

c. $28,780.40

d. $3,074.66

Question

Business

Asa White

18 September, 06:05

For the last 20 years, terry has made regular quarterly payments in the amount of $308 into an account paying 1.5% compounded quarterly. if, at the end of the 20 year period, terry stops making deposits, transfers the balance to an account paying 5.5% interest compounded annually, and withdraws a annual salary from the account, determine the amount that he will receive every year for 10 years. round to the nearest cent.

a. $28,672.88

b. $3,803.97

c. $28,780.40

d. $3,074.66

+5

Answers (1)

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Cole Cowan · Answer 1

Base on my research, Terry will receive an amount of $3,803.97 annually for 10 years. The amount that Terry will receive is affected by the amount she paid for the last 20 years with the interest and also it is affected by the 5.5% interest compounded annually.