You plan on making a $235.15 monthly deposit into an account that pays 3.2% interest, compounded monthly, for 20 years. at the end of this period, you plan on withdrawing regular monthly payments. determine the amount that you can withdraw each month for 10 years, if you plan on not having anything in the account at the end of the 10 year period and no future deposits are made to the account. a.$769.27b.$767.23c.$78,910.41d.$79 ,120.84

a) $769.27

Step-by-step explanation:

Since, the future value of annuity,

Where, P is the periodic payment.

r is rate per period,

n is the number of period,

Here, P = $ 235.15,

r =

n = 20 × 12 = 240

Therefore, the total amount deposited or the future annuity of the deposit,

Now, When this amount is withdraw for 10 years then the amount of monthly payment will be get by the formula,

Where PV is the present value,

r is the periodic rate

n is the number of period,

Here, PV = 78910.4119939,

n = 120

Therefore, the required monthly payment,

The amount that will be withdraw each month = $ 769.27 (Approx)

Option A is correct.