Question
You are about to open a bank account to prepare for your retirement. You plan to deposit $1,800 per month, and the first deposit will
You are about to open a bank account to prepare for your retirement. You plan to deposit $1,800 per month, and the first deposit will be made 60 months away from today. You plan to make 300 payments, and the interest rate is 2.4% APR, compounded monthly. The account balance before your first deposit is $0.
SUPPOSE TIME HAS PASSED AND YOU HAVE MADE THE FINAL MONTHLY PAYMENT TODAY. STARTING FROM ONE QUARTER AWAY FROM TODAY, YOU PLAN TO MAKE EQUAL WITHDRAWLS EVERY QUARTER. INTEREST RATE IS STILL 2.4% APR. IF YOU PLAN TO EXHAUST YOUR ACCOUNT IN EXACTLY 20 YEARS, HOW MUCH CAN YOU WITHDRAW EVERY QUARTER?
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