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17) On January 10, 1995, Mrs. Kim made a single deposit at the bank that paid interest at a rate of 7%/a compounded semi-annually. On
17) On January 10, 1995, Mrs. Kim made a single deposit at the bank that paid interest at a rate of 7%/a compounded semi-annually. On January 10, 2005, Mrs. Kim started depositing $325 at the end of each month into a separate account. The interest rate offered by the bank was 8%/a compounded monthly. On January 10, 2015, Mrs. Kim has been informed that the two accounts have a total accumulated value of $72 500. a) What was Mrs. Kim's initial deposit on January 10, 1995? [4 marks] b) What maximum monthly withdrawal, for the next 3 years, could Mrs. Kim make if the money from both accounts were invested into another account that earned interest at a rate of 4%/a compounded monthly? [2 marks]
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