Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Derek currently has $11,741.00 in an account that pays 4.00%. He will withdraw $5,838.00 every other year beginning next year until he has taken 8.00
Derek currently has $11,741.00 in an account that pays 4.00%. He will withdraw $5,838.00 every other year beginning next year until he has taken 8.00 withdrawals. He will deposit $11741.0 every other year beginning two years from today until he has made 8.0 deposits. How much will be in the account 23.00 years from today? Submit Answer format: Currency: Round to: 2 decimal places. Derek can deposit $264.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 13.00% and compounds interest monthly. Derek can deposit $2,594.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years? Submit Answer format: Percentage Round to: 4 decimal places (Example 9.243496, % sign required. Will accept decima/ format rounded to 6 decimal places (ex: 0.092434))
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started