Question
Judy won the lottery for $10,500,000. She decides to put all of the money into a long term bond maturing after 20 years compounded
Judy won the lottery for $10,500,000. She decides to put all of the money into a long term bond maturing after 20 years compounded annually at an interest rate of 5%. After the bond matures she puts the money in a bank account where she takes out a fixed amount of money per month for the next 15 years. The bank account gets a monthly interest rate of 0.5%. How much money can she receive monthly from the bank account?
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Get StartedRecommended Textbook for
Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
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