Question 117 • ****Spring 2026 Financial Math - MA2007 MQS21QXV
First find the balance after 80 quarterly deposits: $308 × [((1 + 0.015/4)^80 − 1)/(0.015/4)] = $28,672.88. This balance funds 10 equal annual withdrawals at 5.5%, so the annual amount is $28,672.88 × [0.055/(1 − 1.055^−10)] = $3,803.97. Terry will receive $3,803.97 each year, choice B.
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