Question
Assume that two months from today you plan to make the first of a series of quarterly deposits into an account that pays an APR
Assume that two months from today you plan to make the first of a series of quarterly deposits into an account that pays an APR of 6.5% with monthly compounding. Your first deposit will equal $100 and your final deposit will occur two years and five months from today. Each deposit will be 1.5% smaller than the previous one. Three years and seven months from today, you plan to make the first of a series of semiannual withdrawals from an account. You will continue to make withdrawals through five years and one month from today. Each withdrawal will be 2.5% larger than the previous one. How large can you make your final withdrawal?
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