Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#28 Derek wants to withdraw $14,612.00 from his account 6.00 years from today and $13,072.00 from his account 10.00 years from today. He currently has

image text in transcribed
#28 Derek wants to withdraw $14,612.00 from his account 6.00 years from today and $13,072.00 from his account 10.00 years from today. He currently has $3,524.00 in the account. How much must he deposit each year for the next 10.0 years? Assume a 5.58% interest rate. His account must equal zero by year 10.0 but may be negative prior to that. Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: 3 #29 Derek can deposit $257.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 15.00% and compounds interest monthly. Derek can deposit $2,508.00 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

what is a peer Group? Importance?

Answered: 1 week ago