Alex wants to start an ira that will have $1,250,675 in it when he retires in 30 years. how much should he invest semiannually in his ira to do this if the interest is 4.5% compounded semiannually? assume an annuity due. round to the nearest cent.
a. $9,698.12
c. $9,828.44
b. $9,728.66
d. $9,931.10

Since we are already given the future value of an annuity due, as well as the annual interest rate (we have to divide this by 2 since it is compounded semi-annually), we can use the formula of the annuity due to solve for the cash flow per period.

Future value of annuity = C * ( ((1 + i/2)^n - 1)/(i/2) ) * (1 + i/2)
1,250,675 = C *  ( ((1 + 0.045/2)^60 - 1)/(0.045/2) ) * (1 + 0.045/2)
C = 9828.44

Therefore, the annuity would be equal to $9,828.44.

Are there any statements?