You want to be able to withdraw $4000 from an account at the end of each 6-month period (that is, twice a year) for the next 8 years. How much money should you invest now into an account earning 2.4% interest per year, compounded every 6 months, in order to fund the desired withdrawals? Assume the account is empty after the last withdrawal is made. Give the answer correctly to 2 decimal places. The amount to invest now is dollars.

You want to be able to withdraw $4000 from an account at the end of each 6-month period (that is, twice a year) for the next 8 years. How much money should you invest now into an account earning 2.4% interest per year, compounded every 6 months, in order to fund the desired withdrawals? Assume the account is empty after the last withdrawal is made. Give the answer correctly to 2 decimal places. The amount to invest now is dollars.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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