Assuming a 8% discount rate throughout: Beginning today (time 0), you deposit $5,000 (per period) in an account for 15 periods (a total of 15 deposits. In addition, 12 years from today, you deposit an extra $100,000 (a one-time deposit). Three periods after the last deposit, you begin to make a series of constant size withdrawals for 8 periods (a total of 8 withdrawals) followed by 1 period of a $25,000 withdrawal. If the discount rate is 8% throughout all periods, answer the following: a) if you want a zero balance in your account immediately after the last withdrawal, what is the size of the 8 constant size withdrawals? b) how much would be in the account 15 years from today (assume that any deposits at time 15 have been made or any withdrawals at that time have been taken? c) using all of the information in the original problem including a zero balance after the last withdrawal, what would the size of the first withdrawal (of the 9 constant size withdrawals) be if you want each successive withdrawal to grow at 2% from period to period?
Assuming a 8% discount rate throughout:
Beginning today (time 0), you deposit $5,000 (per period) in an account for 15 periods (a total of 15 deposits. In addition, 12 years from today, you deposit an extra $100,000 (a one-time deposit). Three periods after the last deposit, you begin to make a series of constant size withdrawals for 8 periods (a total of 8 withdrawals) followed by 1 period of a $25,000 withdrawal. If the discount rate is 8% throughout all periods, answer the following:
a) if you want a zero balance in your account immediately after the last withdrawal, what is the size of the 8 constant size withdrawals?
b) how much would be in the account 15 years from today (assume that any deposits at time 15 have been made or any withdrawals at that time have been taken?
c) using all of the information in the original problem including a zero balance after the last withdrawal, what would the size of the first withdrawal (of the 9 constant size withdrawals) be if you want each successive withdrawal to grow at 2% from period to period?
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