When Herb turned 24 years old, he started working for a company that produced outboard engines for boats. While for the company, he contributed $1260 at the end of each six months into a savings account that earned 2.95% interest compounded semiannually for 29 years. At the end of the 29th year of working for the company, company went bankrupt. Fortunately, Herb found another job, but didnt pay well enough money as the previous jobsdid, so he stopped contributing money to the account altogether. If Herbs retires at the age of 63 and starts pulling money out of the account at the end of 6 months , then how much money can he withdraw at the end of each 6 months so the account will last him until he turns 75 years old
When Herb turned 24 years old, he started working for a company that produced outboard engines for boats. While for the company, he contributed $1260 at the end of each six months into a savings account that earned 2.95% interest compounded semiannually for 29 years. At the end of the 29th year of working for the company, company went bankrupt. Fortunately, Herb found another job, but didnt pay well enough money as the previous jobsdid, so he stopped contributing money to the account altogether. If Herbs retires at the age of 63 and starts pulling money out of the account at the end of 6 months , then how much money can he withdraw at the end of each 6 months so the account will last him until he turns 75 years old?
Step by step
Solved in 3 steps with 2 images
