Determine the amount needed such that when it comes time for retirement, an individual can make semiannual withdrawals in the amount of $15,265 for 35 years from an account paying 4.5% compounded semiannually. round your answer to the nearest cent.

The amount that an individual need to make semiannual withdrawals of $15,530 for 35 years compounded semiannually after retirement is $535,528.03.

Further Explanation:

Present Value: It is the current value of a future cash flow or streams of cash flow calculated at given a specific rate of return. The present value is calculated as:

Calculate the present value of the future cash flow:

Thus,

Therefore, the amount that an individual need to make semiannual withdrawals of $15,530 for 35 years compounded semiannually after retirement is $535,528.03.

Learn more:

1. The present value of allowance

2. Future value of the investment

3. Net present value

Answer details:

Grade: High School

Subject: Financial Management

Chapter: Time Value of Money

Keywords: time for retirement, an individual, semiannual withdrawals, amount of $15,265, 35 years, account paying 4.5%, compounded semiannually, Time Value of Money, determine the amount needed.

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