$6000 is deposited into an account earning 8% annual effective interest on December 31, 1984. Deposits continue on this date every year, but the deposits increase by $500 each year. On January 1, 2015, the deposits stop and money in the account begins to be withdrawn continuously at a constant rate of $X per year. The account is empty at the end of 30 years. Determine X.
$6000 is deposited into an account earning 8% annual effective interest on December 31, 1984. Deposits continue on this date every year, but the deposits increase by $500 each year. On January 1, 2015, the deposits stop and money in the account begins to be withdrawn continuously at a constant rate of $X per year. The account is empty at the end of 30 years. Determine X.
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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please very soon $6000 is deposited into an account earning 8% annual effective interest on December 31, 1984. Deposits continue on this date every year, but the deposits increase by $500 each year. On January 1, 2015, the deposits stop and money in the account begins to be withdrawn continuously at a constant rate of $X per year. The account is empty at the end of 30 years. Determine X.
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