Question

Find the amount necessary to fund the given withdrawals.

Semiannual withdrawals of 270$ for 6 years, interest rate is 6.2% compounded semiannually

Answer 1

the amount that necessary to fund is $2,671.61

Explanation:

The computation of the amount is shown below;

Given that

PMT = $270

NPER = 6 × 2 = 12

RATE = 6.2% ÷ 2 = 3.1%

FV = $0

The formula is shown below:

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula the present value is $2,671.61

hence, the amount that necessary to fund is $2,671.61