Question
A bank account earns 0.06% per year compounded bimonthly. An initial deposit of $80,000 is made with consecutive payments of $1,000 every 3 months for
A bank account earns 0.06% per year compounded bimonthly. An initial deposit of $80,000 is made with consecutive payments of $1,000 every 3 months for 10 years. Semiannual withdrawals of $3,000 are planned to occur beginning in years 3 to 10. Additionally, monthly expenditures are going to be made from year 4 to year 8 accounting for $100 increasing to $110, $120 and so on. And for business reasons, a single payment is expected into the account during July 5 years from now of $100,000. a) What is the future worth of the bank account in year 10? b) A friend of yours is offering to give you $210,000 right now to take control and ownership of your account. Should you sell? Yes or no? Why?
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