Ezzat invests $50 000 in an account which earns 8% interest, compounded annually. He intends to withdraw SM at the end of each year, immediately after the interest has been paid. He wishes to be able to do this for exactly 20 years, so that the account will then be empty. i. How much money does he have in the account immediately after he has made his first withdrawal? Write an expression in terms of M for the amount of money in the account, immediately after his 20th withdrawal. 111. iv. Calculate the value of M which leaves his account empty after the 20th withdrawal. Suppose Ezzat wished to be able to withdraw $8000 per year for the 20 years. By using your calculator alone, estimate, to the nearest per cent, the interest rate he would then need to earn on his account.
Ezzat invests $50 000 in an account which earns 8% interest, compounded annually. He intends to withdraw SM at the end of each year, immediately after the interest has been paid. He wishes to be able to do this for exactly 20 years, so that the account will then be empty. i. How much money does he have in the account immediately after he has made his first withdrawal? Write an expression in terms of M for the amount of money in the account, immediately after his 20th withdrawal. 111. iv. Calculate the value of M which leaves his account empty after the 20th withdrawal. Suppose Ezzat wished to be able to withdraw $8000 per year for the 20 years. By using your calculator alone, estimate, to the nearest per cent, the interest rate he would then need to earn on his account.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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