The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 7 years. (a) Find the amount of each withdrawal. (b) Find the amount of each withdrawal if the money must last 9 years. (a) The amount of each withdrawal is $ (Round your answer to the nearest cent.) CI
The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 7 years. (a) Find the amount of each withdrawal. (b) Find the amount of each withdrawal if the money must last 9 years. (a) The amount of each withdrawal is $ (Round your answer to the nearest cent.) CI
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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![The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of
each six-month period, but the money must last 7 years.
(a) Find the amount of each withdrawal.
(b) Find the amount of each withdrawal if the money must last 9 years.
(a) The amount of each withdrawal is $
(Round your answer to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2417bb6f-10b0-448a-93aa-27d02c61e29d%2F8f1d553c-db14-47cd-95f9-4003d1f5e5b6%2Fbfx34x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of
each six-month period, but the money must last 7 years.
(a) Find the amount of each withdrawal.
(b) Find the amount of each withdrawal if the money must last 9 years.
(a) The amount of each withdrawal is $
(Round your answer to the nearest cent.)
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