A child age 3 is given $20,000. The amount is put into savings account which pays 4% compounded annually. If the child takes the money out in eight equal annual payments with the first in 15 years, what is the size of each withdrawal?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A child age 3 is given $20,000. The amount is put into
savings account which pays 4% compounded
annually. If the child takes the money out in eight
equal annual payments with the first in 15 years,
what is the size of each withdrawal?
$34,633.53
$5144.04
$297.06
$5349.80
Rewatch
Transcribed Image Text:A child age 3 is given $20,000. The amount is put into savings account which pays 4% compounded annually. If the child takes the money out in eight equal annual payments with the first in 15 years, what is the size of each withdrawal? $34,633.53 $5144.04 $297.06 $5349.80 Rewatch
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