Answer:
The amount necessary to fund the withdrawal is $8798.820
Step-by-step explanation:
Here, we are interested in calculating the necessary amount to fund the withdrawal given in the question.
From the question, we can identify the following;
Principal amount, P= $850
Here, Period rate, i = 0.047/ 2 =0.0235
n = 6*2 = 12
Mathematically;
Present Value of an annuity, Ao=P* [1-(1+i)^{-n}]/i
Ao=850* [1-(1+0.0235)^{-12}] /0.0235
Ao = $8798.820
