Three years from now, a couple plans to spend 4 months traveling in China, Japan, and Southeast Asia. When they take their trip, they would like to withdraw $15,000 at the beginning of each month to cover their expenses for that month. Starting now, how much must they deposit at the beginning of each month for the next 3 years so that the account will provide the money they want while they are traveling (in $)? Assume that such an account pays 5.4% compounded monthly. (Round your answer to the nearest cent.)
Three years from now, a couple plans to spend 4 months traveling in China, Japan, and Southeast Asia. When they take their trip, they would like to withdraw $15,000 at the beginning of each month to cover their expenses for that month. Starting now, how much must they deposit at the beginning of each month for the next 3 years so that the account will provide the money they want while they are traveling (in $)? Assume that such an account pays 5.4% compounded monthly. (Round your answer to the nearest cent.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Three years from now, a couple plans to spend 4 months traveling in China, Japan, and Southeast Asia. When they take their trip, they would like to withdraw $15,000 at the beginning of each month to cover their expenses for that month. Starting now, how much must they deposit at the beginning of each month for the next 3 years so that the account will provide the money they want while they are traveling (in $)? Assume that such an account pays 5.4% compounded monthly. (Round your answer to the nearest cent.)
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