Kristen invested the profit of her business in an investment fund that was earning 3.25% compounded monthly. In 5 years, she began withdrawing $4,500 from this fund at the end of every 6 months. If the money in the fund lasted for the next 4 years, how much money did she initially invest in the fund? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit solutions. $ Round to the nearest cent your
Kristen invested the profit of her business in an investment fund that was earning 3.25% compounded monthly. In 5 years, she began withdrawing $4,500 from this fund at the end of every 6 months. If the money in the fund lasted for the next 4 years, how much money did she initially invest in the fund? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit solutions. $ Round to the nearest cent your
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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Transcribed Image Text:Kristen invested the profit of her business in
an investment fund that was earning 3.25%
compounded monthly. In 5 years, she
began withdrawing $4,500 from this fund
at the end of every 6 months. If the money
in the fund lasted for the next 4 years, how
much money did she initially invest in the
fund? Please include a well-labelled
timeline diagram. Full solutions should be
shown on separate sheets of paper. Submit
solutions. $ Round to the nearest cent
your
Expert Solution
Step 1
The future value of amount includes the amount being deposited and amount of compounding interest being accumulated over the period of time.
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