Q6) Lewis Litt is saving up for his daughter's law school education by depositing $1,000 monthly for 18 years into a savings account earning 6% compounded annually. She will then make end of quarterly withdrawals from that same account for 9 years while in law school. How large will those quarterly withdrawals be if the rate stays the same for the entire timeline of 27 years?

Q6) Lewis Litt is saving up for his daughter's law school education by depositing $1,000 monthly for 18 years into a savings account earning 6% compounded annually. She will then make end of quarterly withdrawals from that same account for 9 years while in law school. How large will those quarterly withdrawals be if the rate stays the same for the entire timeline of 27 years?

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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Suppose a recent college graduate's first job allows her to deposit $200 at the end of each month in a savings plan that earns 12%, compounded monthly. This savings plan continues for 12 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 27 years after the plan began? (Round your answer to the nearest cent.) $
Suppose a recent college graduate's first job allows her to deposit $100 at the end of each month in a savings plan that earns 12%, compounded monthly. This savings plan continues for 6 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 21 years after the plan began? (Round your answer to the nearest cent.) $
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