Question
Mr.Smith who deposits 100,000 in a bank on January 1 and then makes withdrawals monthly thereafter beginning February 1. The bank credits interest montly. All
Mr.Smith who deposits 100,000 in a bank on January 1 and then makes withdrawals monthly thereafter beginning February 1. The bank credits interest montly. All answers are numerical.
Hint: In each case think of the bank as paying Mr.Smith an annunity with a PV value of 100,000.
Here, Mr.Smith wants to complete his withdrawals on Jan 1 exactly 10 years later. How much should Mr.Smith withdraw each month?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
9th Edition
9339222571, 978-9339222574
