How much would you have to deposit now, so that you can withdraw of $10000 starting at the end of year 5, and subsequent withdrawals will decrease a rate of of 10% semiannual year over the previous year's until at the end of year 8, if the interest rate is 6%, compounded semi- annually? Note: Draw the cash flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution. Round your answer to 2 decimal places.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
Question
Solve the following with complete solutions
How much would you have to deposit now, so that you can withdraw of $10000 starting at the
end of year 5, and subsequent withdrawals will decrease a rate of of 10% semiannual year over
the previous year's until at the end of year 8, if the interest rate is 6%, compounded semi-
annually?
Note: Draw the cash flow diagram and use interest rate with five decimal places. Box
your final answer and upload the picture of your solution.
Round your answer to 2 decimal places.
Transcribed Image Text:How much would you have to deposit now, so that you can withdraw of $10000 starting at the end of year 5, and subsequent withdrawals will decrease a rate of of 10% semiannual year over the previous year's until at the end of year 8, if the interest rate is 6%, compounded semi- annually? Note: Draw the cash flow diagram and use interest rate with five decimal places. Box your final answer and upload the picture of your solution. Round your answer to 2 decimal places.
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