Question
Assume that four years and one month from today you plan to make the first ofseveralannual withdrawals from an account. Your first withdrawal will equal
Assume that four years and one month from today you plan to make the first ofseveralannual withdrawals from an account. Your first withdrawal will equal $1000. You plan for these withdrawals to continue through ten years and one month from today and for each withdrawal to be 0.5% larger than the previous withdrawal. You plan to fund these withdrawals by making a series of equal semiannual deposits into an account earning an APR of 8% with semiannual compounding. Your first deposit will occur one year and four months from today and your final deposit will occur three years andten months from today. How large must you make each deposit? Formula is required.
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