An initial payment of $9,000 is deposited into a bank with a nominal annual interest rate of 8%,compounded semi-annually. You would like to withdraw this amount in in a series of 5 equalannual sums, with the first withdrawal being 1 year form the deposit. What is the amount thatshould be withdrawn each year?$2,263.62$2,211.62$2,221.62$2,262.62

Answered: punded semi-annually. You woul I sums,…

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punded semi-annually. You woul I sums, with the first withdrawal d be withdrawn each year?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

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Question

An initial payment of $9,000 is deposited into a bank with a nominal annual interest rate of 8%,
compounded semi-annually. You would like to withdraw this amount in in a series of 5 equal
annual sums, with the first withdrawal being 1 year form the deposit. What is the amount that
should be withdrawn each year?
$2,263.62
$2,211.62
$2,221.62
$2,262.62

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