You want to withdraw a single sum of $8,000 from an account at the end of 12

Question:

You want to withdraw a single sum of $8,000 from an account at the end of 12 years. This withdrawal will deplete the account.

a. What single sum of money must you deposit today if the account earns 5 percent simple interest? 

b. What single sum of money must you deposit today if the account earns 5 percent compound interest?

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

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

Question Posted: