Question
Annuity is a sequence of equal periodic payments .One type of annuity is a large amount of money deposited into a bank account and then
Annuity is a sequence of equal periodic payments .One type of annuity is a large amount of money deposited into a bank account and then a fixed amount is withdrawn each month
Suppose you deposit $1000 into the account paying 3.6% compounded monthly ,and then withdraw $600 at the end of each month . the monthly interest rate will be .036/12 or .003, and the balance in the account at the end of each month will be computed as:
[balance at the end of the month] = (1.003) * [balance at end of previous month] - 600
After how many months will the account contain less than $600, and what will be the amount at that time?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
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