Answered: How much should be his monthly…

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How much should be his monthly withdrawals?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 8E

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Question

Josiah, a fisherman, won a local lottery game. After reserving a portion
of his winning for his family’s immediate expenses, he is left with ₱
150,000.00. He decided to put this in an account providing 3% interest
compounded monthly. He also plans to let the money grow for 5 years,
and then make equal monthly withdrawals for another 5 years until the
money is the account is deleted. How much should be his monthly
withdrawals?

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