Suppose That Scott Andrews Deposits His $10,500 Bonus in an Account

question 64

Multiple Choice

Suppose that Scott Andrews deposits his $10,500 bonus in an account that earns an annual rate of 7.0%, compounded quarterly, and makes additional deposits of $700 at the end of each quarter for the next 24.5 years, until he retires. To supplement his retirement, Scott wants to make withdrawals at the end of each quarter for the next 15 years (at which time the account balance will be $0) . What is the total amount withdrawn? Assume the interest rate remains the same during Scott's retirement. Round your answer to the nearest cent. ​

• A)$1,083,705.25
• B)$248,930.60
• C)$263,347.98
• D)$296,223.11
• E)$383,855.34

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Definitions:

Exponential Smoothing Forecast

A time series forecasting method that applies decreasing weights to older data.

Previous Forecast Value

The forecast figure from the immediately preceding time period, used as a point of reference or comparison for current forecasting activities.

Operational Variations

Fluctuations in operational performance that can result from a variety of factors, including changes in demand, supply chain issues, or equipment failures.

Time Series

A sequence of data points, typically consisting of successive measurements made over a time interval.