Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (Round your answers to the nearest cent.) (a) How much is in the account after the last deposit is made? $ (b) How much was deposited? $ (c) What is the amount of each withdrawal? $ (d) What is the total amount withdrawn?
Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (Round your answers to the nearest cent.) (a) How much is in the account after the last deposit is made? $ (b) How much was deposited? $ (c) What is the amount of each withdrawal? $ (d) What is the total amount withdrawn?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (Round your answers to the nearest cent.)
(a) How much is in the account after the last deposit is made?
$
(b) How much was deposited?
$
(c) What is the amount of each withdrawal?
$
(d) What is the total amount withdrawn?
$
$
(b) How much was deposited?
$
(c) What is the amount of each withdrawal?
$
(d) What is the total amount withdrawn?
$
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