John already has $19,598 in his savings account. He plans to make contributions of $753.35 at the end of every three months, until he reaches $47,100. The interest rate is 9.12% compounded annually. a) In how many years and months will he reach his goal? Round up to the next month. P/Y= A/ N = He will reach his goal in A year(s) and A month(s). b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. For how many years and months can he make the withdrawals? Round up to the next month. P/Y= A/ N= A He will withdraw for A Ay year(s) and month(s).
John already has $19,598 in his savings account. He plans to make contributions of $753.35 at the end of every three months, until he reaches $47,100. The interest rate is 9.12% compounded annually. a) In how many years and months will he reach his goal? Round up to the next month. P/Y= A/ N = He will reach his goal in A year(s) and A month(s). b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. For how many years and months can he make the withdrawals? Round up to the next month. P/Y= A/ N= A He will withdraw for A Ay year(s) and month(s).
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:John already has $19,598 in his savings account. He plans to make contributions of $753.35 at
the end of every three months, until he reaches $47,100. The interest rate is 9.12%
compounded annually.
a) In how many years and months will he reach his goal? Round up to the next month.
P/Y =
N =
He will reach his goal in
A year(s) and
A month(s).
b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. For
how many years and months can he make the withdrawals? Round up to the next month.
P/Y=
A/
N =
A
He will withdraw for
A
A/ year(s) and
A month(s).
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