Originally, the depositor intended to make two $100 withdrawals, the fırst in 2022 and the second in 2026, emptying an account that earns 5% interest, compounded annually. Now, suppose the depositor changes their mind (i.e., does not make these two withdrawals) and instead decides to empty the account with a single withdrawal in 2025. What is the withdrawal amount that would empty the account? (The original data must be used; that is, the answer to [4a] may only be used to verify the answer to this question.)

Originally, the depositor intended to make two $100 withdrawals, the fırst in 2022 and the second in 2026, emptying an account that earns 5% interest, compounded annually. Now, suppose the depositor changes their mind (i.e., does not make these two withdrawals) and instead decides to empty the account with a single withdrawal in 2025. What is the withdrawal amount that would empty the account? (The original data must be used; that is, the answer to [4a] may only be used to verify the answer to this question.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 34P

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