John already has $50,429 in his savings account. He plans to make contributions of $1,658 at the end of every six months, until he reaches $73,400. The interest rate is 2.13% compounded quarterly. a) In how many years and months will he reach his goal? Round up to the next month. P/Y = V= He will reach his goal in A year(s) and A month( o) After John reaches $73,400, he wants to withdraw $600 at the start of each month. For now many years and months can he make the withdrawals? Round up to the next month.
John already has $50,429 in his savings account. He plans to make contributions of $1,658 at the end of every six months, until he reaches $73,400. The interest rate is 2.13% compounded quarterly. a) In how many years and months will he reach his goal? Round up to the next month. P/Y = V= He will reach his goal in A year(s) and A month( o) After John reaches $73,400, he wants to withdraw $600 at the start of each month. For now many years and months can he make the withdrawals? Round up to the next month.
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 $50,429 in his savings account. He plans to make contributions of $1,658.65
at the end of every six months, until he reaches $73,400. The interest rate is 2.13%
compounded quarterly.
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 $73,400, he wants to withdraw $600 at the start of each month. 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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