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How long will it be until the account balance is $0?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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A personal account earmarked as a retirement supplement contains $342,200. Suppose $300,000 is used to establish an annuity that earns 6%, compounded quarterly, and pays $6000 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.)

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