An ordinary annuity pays 7.44% compounded monthly. (A) A person deposits $100 monthly for 30 years and
Question:
An ordinary annuity pays 7.44% compounded monthly.
(A) A person deposits $100 monthly for 30 years and then makes equal monthly withdrawals for the next 15 years, reducing the balance to zero. What are the monthly withdrawals? How much interest is earned during the entire 45-year process?
(B) If the person wants to make withdrawals of $2,000 per month for the last 15 years, how much must be deposited monthly for the first 30 years?
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A To find the monthly withdrawals and the total interest earned during the entire 45year process we can use the formula for the future value of an ann...View the full answer
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Related Book For 
College Mathematics For Business Economics Life Sciences And Social Sciences
ISBN: 9780321945518
13th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen
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