Find the Periodic Withdrawal for an Annuity of $240,000 at 6

question 106

Multiple Choice

Find the periodic withdrawal for an annuity of $240,000 at 6%, paid out quarterly for 25 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.

• A) \(P M T = \$ 4,648.94\)
• B) \(P M T = \$ 1,048.94\)
• C) \(P M T = \$ 6,205.22\)
• D) \(P M T = \$ 3,095.97\)
• E) \(P M T = \$ 1,546.32\)

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Definitions:

Arch

A curved structural member that spans an opening and is generally composed of wedge-shaped blocks (voussoirs) that transmit the downward pressure laterally. See also thrust.

Lost Wax

A method of metal casting in which a molten metal is poured into a mold that has been created using a wax model, which is then melted away and lost.

Repoussé

Formed in relief by beating a metal plate from the back, leaving the impression on the face. The metal sheet is hammered into a hollow mold of wood or some other pliable material and finished with a graver. See also Relief.

Drilling

The process of making holes in a solid substrate by using a rotating tool called a drill, often used in construction, manufacturing, and resource extraction.