Answer:
The amount needed to finance this level of withdrawals is $ 9422.06
Step-by-step explanation:
For a fixed amount periodically withdrawn, during [tex]n[/tex] periods, with an interest rate [tex]i[/tex], there is a present value of:
[tex]V_{p} = A [\frac{1- (1 + i) ^{- n}}{i}][/tex]. From where,
[tex]V_{p} = 650 [\frac{1- (1 + 0.045)^{-24}}{0.045}] = 9422.06[/tex]
The amount needed to finance this level of withdrawals is $ 9422.0609
