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 is $225093.358.
The total amount to be withdrawn in a year = 15265*2 = $30530
The total amount to be withdrawn in 35 years =$1068550
Compound interest is interest on interest along with interest on the principle.
Annual Rate of interest = 4.5%
Semi-annual rate of interest r=2.25%
Amount A= $1068550
[tex]1068550 =P(1+\frac{2.25}{100})^70[/tex]
[tex]P = $225093.358[/tex]
Therefore, 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 is $225093.358.
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