You want to be able to travel and your yearlong trip. During your trip your travel fund will earn 6.24% compounded monthly. What is the size of your travel fund if you want to be able to start your trip in 4 years and 7 months?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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You want to be able to travel and withdraw $3750 at the end of every month during
your yearlong trip. During your trip your travel fund will earn 6.24% compounded
monthly. What is the size of your travel fund if you want to be able to start your trip
in 4 years and 7 months?
Transcribed Image Text:You want to be able to travel and withdraw $3750 at the end of every month during your yearlong trip. During your trip your travel fund will earn 6.24% compounded monthly. What is the size of your travel fund if you want to be able to start your trip in 4 years and 7 months?
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