A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100. The first monthly deposit occurred on June 1, 2012 and the last monthly deposit will be on January 1, 2019. The account (the series of monthly deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5000 and occurred on October 1, 2012. The last $5000 withdrawal will occur on January 1, 2019. How much remains in the account after the last withdrawal?
A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100. The first monthly deposit occurred on June 1, 2012 and the last monthly deposit will be on January 1, 2019. The account (the series of monthly deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5000 and occurred on October 1, 2012. The last $5000 withdrawal will occur on January 1, 2019. How much remains in the account after the last withdrawal?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2100. The first monthly deposit occurred on June 1, 2012 and the last monthly deposit will be on January 1, 2019. The account (the series of monthly deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5000 and occurred on October 1, 2012. The last $5000 withdrawal will occur on January 1, 2019. How much remains in the account after the last withdrawal?
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