A bank account has $20,000 earning 5% interest compounded continuously. A pensioner uses the account to pay

Question:

A bank account has $20,000 earning 5% interest compounded continuously. A pensioner uses the account to pay himself an annuity, drawing continuously at a $2000 annual rate. How long will it take for the balance in the account to drop to zero?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Calculus And Its Applications

ISBN: 9780134437774

14th Edition

Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar

See More Books

Question Posted: Mar 31, 2023 03:52 AM

See More Questions

For each problem, show your work steps. A correct answer with no work shown gets half credit (which means you fail the assignment). An incorrect answer with no work receives 0 credit. With time value...
Assume that you have applied for a job with a bank. As part of the banks evaluation process, you have been asked to take an assessment that covers several financial analysis techniques. For each...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Workplace stress is sometimes related to time management. Describe a time when you were stressed at work or school because of time management. Explain how you would advise an employee or student to...
Ashford Corporation issued 10,000 shares of no-par common stock for $5 per share on March 13. Record the stock issuance.
Part 1) Using COSTCO attached financial statements a) Compute net operating profit after tax (NOPAT) for 2016. Assume that the combined federal and state statutory tax rate is 37%. b) Compute Net...
How does technology affect available employment positions?
A college student, Brad Worth, plans to sell atomic alarm clocks with MP3 players over the Internet and by mail order to help pay his expenses during the fall semester. He buys the clocks for $32 and...
Trend Reporting for Non-Value Added Costs Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary...
Figure 8 shows a slope field of the differential equation y = 2y (1 - y). With the help of this figure, determine the constant solutions, if any, of the differential equation. Verify your answer by...
Figure 8 shows a portion of the solution curve of the differential equation y = 2y (1 - y) through the point (0, 2). On Fig. 8 or a copy of it, draw an approximation of the solution curve of the...
How is an alteration defined under the ADA?
inverse function of f ( x ) = 9 - 8 e ^ x
Let = <3,2,-1) = < 1,3 -> W=
1. This is a group assignment, and the lecturer will create and finalize assignment groups in week 3/4. (4-5 members in each group). 2. Identify a problem (only one problem relating to OB) in an...
Fromthefollowinginformation, preparejournalentriestodistributetransportationexpenses(ontheaverage rate permilepermonthmethod)andstoresexpenses. Truckmileageduringthemonth:...
2 Staffing at the Optimal Utilization A large theme park is attempting to staff its check-in desks. Currently, the arrival rate is A = 364.5 customers per hour, and each server can check-in p=81...
In Figure 12.5, let regions 2 and 3 both be of quarter-wave thickness. Region 4 is glass, having refractive index, n 4 = 1.45; region 1 is air.
What do you think?
Construct a frequency distribution and histogram for the swim time measurements in Exercise 6-24.
Using the data on bridge conditions from Exercise 6-20, (a) Find the quartiles and median of the data. (b) Draw a box plot for the data. (c) Should any points be considered potential outliers?...
Using the data on acid rain from Exercise 6-21, (a) Find the quartiles and median of the data. (b) Draw a box plot for the data. (c) Should any points be considered potential outliers? Compare this...
You would like to have a balance of $600,000 at the end of 15 years from monthly savings of $900. If your returns are compounded monthly, what is the APR you need to meet your goal?
Explain the importance of covariance and correlation between assets and understanding the expected value, variance, and standard deviation of a random variable and of returns on a portfolio.
On August 1 , 2 0 2 3 , Mark Diamond began a tour company in the Northwest Territories called Millennium Arctic Tours. The following occurred during the first month of operations: Aug. 1 Purchased...

A bank account has $20,000 earning 5% interest compounded continuously. A pensioner uses the account to pay

Question:

Step by Step Answer:

Let ft be the balance in the account after t years Then ft satisfie...View the full answer

Calculus And Its Applications

Students also viewed these Mathematics questions