An ordinary annuity pays 7.92% compounded monthly. (A) A person deposits $150 monthly for 30 years and then makes equal monthly withdrawals for the next 15 years, reducing the balance to zero. What are the monthly withdrawals? How much interest is earned during the entire 45-year process? (B) If the person wants to make withdrawals of 2,000 per month for the last 15 years, how much must be deposited monthly for the first 30 years? A: the monthly withdrawls are ? ( round to the nearest cent as needed) the interest earned during the entire 45 year process is ? ( round to the nearest cent as needed) B : ____ must be deposited minthly for the first 30 years ( round to the nearest cent as possible)
An ordinary annuity pays 7.92% compounded monthly. (A) A person deposits $150 monthly for 30 years and then makes equal monthly withdrawals for the next 15 years, reducing the balance to zero. What are the monthly withdrawals? How much interest is earned during the entire 45-year process? (B) If the person wants to make withdrawals of 2,000 per month for the last 15 years, how much must be deposited monthly for the first 30 years? A: the monthly withdrawls are ? ( round to the nearest cent as needed) the interest earned during the entire 45 year process is ? ( round to the nearest cent as needed) B : ____ must be deposited minthly for the first 30 years ( round to the nearest cent as possible)
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
Section: Chapter Questions
Problem 1PS
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An ordinary annuity pays
7.92%
compounded monthly.(A) A person deposits
$150
monthly for 30 years and then makes equal monthly withdrawals for the next 15 years, reducing the balance to zero. What are the monthly withdrawals? How much interest is earned during the entire 45-year process?(B) If the person wants to make withdrawals of
2,000
per month for the last 15 years, how much must be deposited monthly for the first 30 years?A: the monthly withdrawls are ? ( round to the nearest cent as needed)
the interest earned during the entire 45 year process is ? ( round to the nearest cent as needed)
B : ____ must be deposited minthly for the first 30 years ( round to the nearest cent as possible)
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