How Much Is Needed in an Account That Earns an Annual

question 28

Multiple Choice

How much is needed in an account that earns an annual rate of 8.4% compounded monthly in order to withdraw $1,200 at the end of each month for 22 years? Round your answer to the nearest cent. ​

• A)$103,164.36
• B)$156,715.29
• C)$151,429.66
• D)$144,245.22
• E)$134,479.83

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Definitions:

Statute Of Frauds

A legal principle requiring certain contracts to be written and signed by the party or parties being charged to be enforceable.

Signature

An individual's signature inscribed uniquely to serve as identification when approving a document.

Document

A piece of written, printed, or electronic matter that provides information or evidence or serves as an official record.

Selling Price

The amount of money for which something is sold, determined by factors like market demand, production cost, and profit margins.