Problem 2 Assume you start working on June 1, 2023 and with your first salary on June 30th you start investing $750 per month in a saving account that pays 4.5% nominal annual interest compounded monthly. Also assume that you plan to retire in June 1, 2048 when you make your last $750 payment. You are planning to use this account to start withdrawing equal monthly amounts for 15 years, starting June 30th 2048. Showing all your work, determine the amount of each withdrawal.
Problem 2 Assume you start working on June 1, 2023 and with your first salary on June 30th you start investing $750 per month in a saving account that pays 4.5% nominal annual interest compounded monthly. Also assume that you plan to retire in June 1, 2048 when you make your last $750 payment. You are planning to use this account to start withdrawing equal monthly amounts for 15 years, starting June 30th 2048. Showing all your work, determine the amount of each withdrawal.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 9PROB
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Transcribed Image Text:Problem 2
Assume you start working on June 1, 2023 and with your first salary on June 30th you
start investing $750 per month in a saving account that pays 4.5% nominal annual
interest compounded monthly. Also assume that you plan to retire in June 1, 2048 when
you make your last $750 payment. You are planning to use this account to start
withdrawing equal monthly amounts for 15 years, starting June 30th 2048. Showing all
your work, determine the amount of each withdrawal.
I
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