20.0k views
1 vote
Tina would like to withdraw an annual salary of $35,756 from an account paying 2.2% compounded annually for 35 years once she retires. Given this information, determine the amount needed in her account in order for her to reach her goal. Round to the nearest cent.

User Ny
by
7.8k points

1 Answer

3 votes
In order for Tina to withdraw an annual salary of $35,756 from an account paying 2.2% compounded annually for 35 years once she retires, she will need $737,939.36 in her account. This is calculated using the following formula:

Amount needed in account = Annual salary / (Interest rate / 100)^(Years of compounding)

Amount needed in account = 35756 / (2.2/ 100)^35 Amount needed in account = $737,939.36
User Wouter Simons
by
8.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories