Benjamin invested $14,500 in a fund earning 5% compounded monthly. She withdraws $900 from the fund at the end of every quarter with the first withdrawal being made 5 years from now. How long will it take for the fund to be depleted? years months Express the answer in years and months, rounded to the next period

Benjamin invested $14,500 in a fund earning 5% compounded monthly. She withdraws $900 from the fund at the end of every quarter with the first withdrawal being made 5 years from now. How long will it take for the fund to be depleted? years months Express the answer in years and months, rounded to the next period

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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Similar questions

Lucy won a large sum in the lottery. She invested part of her winnings into a fund earning 7.95% compounded monthly. She has arranged a systematic withdrawal plan that provides for 120 monthly payments increasing at a constant rate of 0.9% per payment. The first payment of $850 is due one month after she set up the fund. How much interest is included in the payments?
Joel invested $1,025 at the end of every month into an investment fund that was earning interest at 4.75% compounded monthly. She stopped making regular deposits at the end of 9 years when the interest rate changed to 5.00% compounded quarterly. However, she let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in her investment fund at the end of 9 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 13 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 13-year period. $0.00 Round to the nearest cent
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