Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. You have $180,000 in an account earning 1.8% per year. You plan to make 12 annual withdrawals out of this account starting 4 years

a. You have $180,000 in an account earning 1.8% per year. You plan to make 12 annual withdrawals out of this account starting 4 years from today. What are the equal annual withdrawals you can make that will deplete the account at the end? a. $17,736.66 b. $19,142.53 c. $12,742.71 d. $15,351.41 e. $21,669.66 f. $15,878.98 g. $12,918.79

b. You'd like to buy a 40-foot used catamaran in 14 years for $450,000. You already have $82,000 saved in an account earning a monthly interest rate of 0.15%. Your plan is to make monthly deposits into this account in order to save enough to buy the catamaran. How much would you need to save monthly? a. $672.32 b. $2,010.88 c. $2,649.24 d. $1,618.12 e. $1,804.69 f. $1,586.13 g. $2,382.53

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

An Introduction To Derivatives And Risk Management

Authors: Don M. Chance, Roberts Brooks

7th Edition

0324321392, 9780324321395

More Books

Students also viewed these Finance questions

Question

Find a and b in this figure. a b 10 17 9-

Answered: 1 week ago

Question

Using jQuery, remove class "standout" from the fourth tag

Answered: 1 week ago