ch would you have to deposit now. so that you can withdraw of $10000 starting at the end of year 5 , and subsequent Withdrawals will decrease a rate of of 10% semiannual year over the previous year's until at the end of year 8 , if the interest rate is 676. compounded semi-annually? Note: Draw the cosh flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution.

ch would you have to deposit now. so that you can withdraw of $10000 starting at the end of year 5 , and subsequent Withdrawals will decrease a rate of of 10% semiannual year over the previous year's until at the end of year 8 , if the interest rate is 676. compounded semi-annually? Note: Draw the cosh flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

See similar textbooks

Similar questions

A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this type of account, at the start of each quarter starting with the first deposit on the first of January and the fourth deposit on the first of October. What is the total amount in his account at the end of the year?
How much would you have to deposit now, so that you can withdraw of $10,000starting at the end of year 5, and subsequent withdrawals will decrease a rate of of 10% semiannual year over the previous year’s until at the end of year 8, if the interest rate is 6%, compounded semi-annually? Draw the cash flow diagram and use interest rate with five decimal places.
You were entitled to receive $5,000 at the end of six months for the rest of your life. If the interest rate is 10% compounded monthly, what is the present value of perpetuity? can someone explain how come the answer is 97,936.84?
How much would you have to deposit now, so that you can withdraw of $10000 starting at the end of year 5, and subsequent withdrawals will decrease a rate of of 10% semiannual year over the previous year’s until at the end of year 8, if the interest rate is 6%, compounded semi-annually? note: use formula
If you desire to withdraw the given amounts over the next five years from a savings account that earns 5% interest compounded annually, how much do you need to deposit now? Draw the cash flow diagram to illustrate your results. Year 1 2 3 4 5 Amount $1,200 $2,500 $4,000 $3,000 $6,000
How much would you need to deposit in an account today that earns 5.5% interest compounded monthly if you want to have $1500 saved in 2 years? Assume monthly compounding. Round your answer to two decimal places.
Calculate the total interest earned, if you save $68 each month, Starting today, for 11 more years, if the annual interest rate is 9.6 and interest is compounded on a monthly basis?
What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $20458 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year's, if the interest rate is 10%, compounded annually? Note: Draw the cash flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution.
8. What is the nominal rate of interest compounded continuously for 10 years if the compound amount factor is 1.34986?
Liz plans to deposit $20,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be the amount of money left in the bank after three years of her withdrawal? Use a 10% interest rate and draw a cash flow diagram.
You deposit $200 each month into an account earning 5% interest compounded monthly. a) How much will you have in the account in 15 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $
Ben Franklin's gift of $3,000 to New York City grew to $2,000,000 in 200 years. At what interest rate compounded annually would this growth occur? The interest rate would be %. (Round to the nearest hundredth.)