Question

Sammy has worked for a company with a retirement program, and today is retiring from her job with the amount of $155 in her retirement account. She decides to withdrawal an equal amount from this account, once a year, beginning immediately, and ending 16 years from today (for a total of 17 payments). If the interest rate is 5.50%, solve for the annuity amount such that she uses up her full accumulation. $ Place your answer in dollars and cents. Do not use a dollar sign or comma as part of your answer. For example, an answer of fifty four point three eight would be placed as 54.38.

Answer 1

13.52

Step-by-step explanation:

Calculation to solve for the annuity amount

Based on the information we would make use ot financial calculator to find the annuity amount

Annuity=pmt(rate,nper,pv,fv,type)

Where,

PMT?

rate=5.50%

nper=17

pv=-155

fv=0

type=1

Annuity=pmt(5.5%,17,-155,0,1)

Hence,

PMT=13.52

Therefore the annuity amount will be 13.52