Question
Derek wants to withdraw $12,173.00 from his account 4.00 years from today and $13,509.00 from his account 13.00 years from today. He currently has $3,858.00
Derek wants to withdraw $12,173.00 from his account 4.00 years from today and $13,509.00 from his account 13.00 years from today. He currently has $3,858.00 in the account. How much must he deposit each year for the next 13.0 years? Assume a 6.25% interest rate. His account must equal zero by year 13.0 but may be negative prior to that.
Derek currently has $10,116.00 in an account that pays 5.00%. He will withdraw $5,636.00 every other year beginning next year until he has taken 5.00 withdrawals. He will deposit $10116.0 every other year beginning two years from today until he has made 5.0 deposits. How much will be in the account 29.00 years from today?
Derek can deposit $297.00 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 $2,551.00 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?
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