You have $329,866 in an investment account earning 5% compounded semi-annually. a) Starting one month from now, how much can you withdraw each month if you want the withdrawals to last 12 years ? Round to 2 decimal places if needed. b) If, instead you need to withdraw $3,000 per month, how long (in months) will the investment last? Round to 2 decimal places if needed.
You have $329,866 in an investment account earning 5% compounded semi-annually. a) Starting one month from now, how much can you withdraw each month if you want the withdrawals to last 12 years ? Round to 2 decimal places if needed. b) If, instead you need to withdraw $3,000 per month, how long (in months) will the investment last? Round to 2 decimal places if needed.
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:You have $329,866 in an investment
account earning 5% compounded
semi-annually.
a) Starting one month from now, how
much can you withdraw each month
if you want the withdrawals to last 12
years? Round to 2 decimal places if
needed.
b) If, instead you need to withdraw
$3,000 per month, how long (in
months) will the investment last?
Round to 2 decimal places if needed.
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