Question
1. Derek wants to withdraw $14,313.00 from his account 4.00 years from today and $13,623.00 from his account 14.00 years from today. He currently has
1. Derek wants to withdraw $14,313.00 from his account 4.00 years from today and $13,623.00 from his account 14.00 years from today. He currently has $2,092.00 in the account. How much must he deposit each year for the next 14.0 years? Assume a 6.18% interest rate. His account must equal zero by year 14.0 but may be negative prior to that.
2. Derek currently has $10,434.00 in an account that pays 5.00%. He will withdraw $5,646.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $10434.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 27.00 years from today?
3. Derek can deposit $208.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,524.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?
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