For the last 15 years Joseph has deposited $4500 at the end of every six months into an account paying 6.5% compounded semi-annually.He now converts the accumulated amount into a retirement income fund which will ear interest at 5.25% compounded monthly. Joseph plans to receive equal payments at the end of every six months from this fund for the next 10 year. Determine the size of each payment.

For the last 15 years Joseph has deposited $4500 at the end of every six months into an account paying 6.5% compounded semi-annually.He now converts the accumulated amount into a retirement income fund which will ear interest at 5.25% compounded monthly. Joseph plans to receive equal payments at the end of every six months from this fund for the next 10 year. Determine the size of each payment.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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