If you save $335 at the beginning of every three months for ten years, for how long can you withdraw $630 at the beginning of each quarter starting ten years from now, assuming that interest is 8% compounded quarterly? State your answer in years and months (from 0 to 11 months).

If you save $335 at the beginning of every three months for ten years, for how long can you withdraw $630 at the beginning of each quarter starting ten years from now, assuming that interest is 8% compounded quarterly? State your answer in years and months (from 0 to 11 months).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

Question

If you save $335 at the beginning of
every three months for ten years, for
how long can you withdraw $630 at
the beginning of each quarter starting
ten years from now, assuming that
interest is 8% compounded quarterly?
State your answer in years and months
(from 0 to 11 months).

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