During a 3-year period when his business was prospering, Jack was able to deposit $1,000 at the end of each month in an account earning 12 percent compounded monthly. The business slackened, and jack could not continue the deposits. Moreover, the interest rate on his accumulated deposits fell to 8 percent compounded quarterly and remained at this level for 10 years, at which time Jack decided to exhaust the account by withdrawing equal amounts at the end of every 6 months for 5 years. The interest rate remained at 8 percent compounded semiannually over the time of the withdrawals. How much did Jack withdraw every 6 months ?
During a 3-year period when his business was prospering, Jack was able to deposit $1,000 at the end of each month in an account earning 12 percent compounded monthly. The business slackened, and jack could not continue the deposits. Moreover, the interest rate on his accumulated deposits fell to 8 percent compounded quarterly and remained at this level for 10 years, at which time Jack decided to exhaust the account by withdrawing equal amounts at the end of every 6 months for 5 years. The interest rate remained at 8 percent compounded semiannually over the time of the withdrawals. How much did Jack withdraw every 6 months ?
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
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During a 3-year period when his business was prospering, Jack was able to deposit $1,000 at the end of each month in an account earning 12 percent compounded monthly. The business slackened, and jack could not continue the deposits. Moreover, the interest rate on his accumulated deposits fell to 8 percent compounded quarterly and remained at this level for 10 years, at which time Jack decided to exhaust the account by withdrawing equal amounts at the end of every 6 months for 5 years. The interest rate remained at 8 percent compounded semiannually over the time of the withdrawals. How much did Jack withdraw every 6 months ?
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