Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Derek wants to withdraw $14,050.00 from his account 3.00 years from today and $13,883.00 from his account 15.00 years from today. He currently has $3,607.00

Derek wants to withdraw $14,050.00 from his account 3.00 years from today and $13,883.00 from his account 15.00 years from today. He currently has $3,607.00 in the account. How much must he deposit each year for the next 15.0 years? Assume a 6.13% interest rate. His account must equal zero by year 15.0 but may be negative prior to that.

Derek currently has $11,104.00 in an account that pays 5.00%. He will withdraw $5,219.00 every other year beginning next year until he has taken 4.00 withdrawals. He will deposit $11104.0 every other year beginning two years from today until he has made 4.0 deposits. How much will be in the account 28.00 years from today?

Derek can deposit $250.00 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 $2,443.00 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?

Please round answers to 4 decimal places please. :)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Finance questions

Question

What do you think you will bring to the organization?

Answered: 1 week ago