2
QuizMultiple Choice

Amortization — Quiz

Question 2 • Financial Math

Google has just purchased your website that reviews GPS systems. You made a profit of 65 dollars comma 000 You would like to invest the 65 dollars comma 000 into an account that pays you an annual compounded interest rate of 5 point 5 percent You want to make annual withdrawals over the next 10 years such that by the end of this 10 year period, the amount remaining in the account will be zero dollars. Determine, from the given information, the amount of the annual withdrawals. Round your answer to the nearest cent.

Answer
A
7 dollars comma 251 point 3 1
B
7 dollars comma 023 point 4 5
C
8 dollars comma 623 point 4 0
D
6 dollars comma 500
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