Question
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
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