You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000 annually at a rate of 3.8% compounded quarterly. During the middle ten years, you contribute $500 monthly at a rate of 2.8% compounded semi-annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly.
You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000 annually at a rate of 3.8% compounded quarterly. During the middle ten years, you contribute $500 monthly at a rate of 2.8% compounded semi-annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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![You wish to have $200,000 at the end of twenty years. In the last five years, you
withdraw $1,000 annually at a rate of 3.8% compounded quarterly. During the middle
ten years, you contribute $500 monthly at a rate of 2.8% compounded semi-annually.
Given this information, determine the initial deposit that has to be made at the start of
the first five years at a rate of 4% compounded monthly.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9bf1a68d-a119-406a-9a4a-876475749989%2F1861640a-aa96-44aa-9ea7-28ec45a8b54c%2F9s2qnak_processed.png&w=3840&q=75)
Transcribed Image Text:You wish to have $200,000 at the end of twenty years. In the last five years, you
withdraw $1,000 annually at a rate of 3.8% compounded quarterly. During the middle
ten years, you contribute $500 monthly at a rate of 2.8% compounded semi-annually.
Given this information, determine the initial deposit that has to be made at the start of
the first five years at a rate of 4% compounded monthly.
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