Question
Suppose the interest rate is always 5.3%. Your grandparents deposit $542,832 at a bank for you. The bank agrees that starting 15 years from now
Suppose the interest rate is always 5.3%. Your grandparents deposit $542,832 at a bank for you. The bank agrees that starting 15 years from now you and or offspring can withdraw a fixed amount of cash each year forever. Find the amount of the yearly cash flow.
Step by Step Solution
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Step: 1
Calculation of perpetual annual cash flow First we shall calculate the value of deposit at the ...
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Step: 2
Step: 3
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Essentials Of Statistics For Business And Economics
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam
7th Edition
1305081595, 978-1305081598
