Question

Max wants to withdraw $925 at the beginning of each quarter for twelve years. If the...

Max wants to withdraw $925 at the beginning of each quarter for twelve years. If the withdrawals are to begin 10 years from now and interest is 4.5% compounded monthly, how much must Max invest today to be able to make the withdrawals?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please Upvote

Thanks

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Henry Quincy wants to withdraw $30,000 each year for 15 years from a fund that earns...
Henry Quincy wants to withdraw $30,000 each year for 15 years from a fund that earns 12% interest. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? A. First withdrawal at year-end B. First withdrawal immediately Pearl Alvarez is investing $385,400 in a fund that earns 11% interest compounded annually. What equal amounts can Pearl withdraw at the end of each of the...
Beginning three months from now, you want to be able to withdraw $3,300 each quarter from...
Beginning three months from now, you want to be able to withdraw $3,300 each quarter from your bank account to cover college expenses over the next four years. If the account pays .73 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Amount needed            $
Chris Quincy wants to withdraw $40,000 each year for 7 years from a fund that earns...
Chris Quincy wants to withdraw $40,000 each year for 7 years from a fund that earns 15% interest. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Leon Quincy wants to withdraw $31,500 each year for 14 years from a fund that earns...
Leon Quincy wants to withdraw $31,500 each year for 14 years from a fund that earns 9% interest. Click here to view factor tables How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.).    A) first withdraws at year end? B) First withdrawal immediately?
Suppose Jim wants to be able to withdraw $10,000 at the end of five years and...
Suppose Jim wants to be able to withdraw $10,000 at the end of five years and withdraw $12,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If Jim can earn 5% on his balances, how much does he need to deposit today to satisfy his withdrawals needs?
Marvin the Martian is thinking about retirement. He wants to be able to withdraw $5,450 from...
Marvin the Martian is thinking about retirement. He wants to be able to withdraw $5,450 from his retirement account every quarter for the next 15 years. If his bank pays a nominal annual rate of 6.25% compounded weekly, how much money does Marvin the Martian need to deposit in his retirement account today to be able to complete each quarterly withdrawal for the next 15 years?
Rose has saved $100,000. If she decides to withdraw $2500 at the beginning of each month...
Rose has saved $100,000. If she decides to withdraw $2500 at the beginning of each month when interest is 6.25% compounded semi-annually, for how long can she make withdrawals
Chris Quincy wants to withdraw $35,600 each year for 9 years from a fund that earns...
Chris Quincy wants to withdraw $35,600 each year for 9 years from a fund that earns 4% interest. Click here to view factor tables How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) First withdrawal at year-end $enter a dollar amount rounded to 0 decimal...
Mr. Gonzales has made beginning-of-year deposits into an investment account for the past 21 years. Each...
Mr. Gonzales has made beginning-of-year deposits into an investment account for the past 21 years. Each deposit was $5500, and the account earned interest at a rate of 4.5% APR, compounded quarterly, each year. Having made his last deposit one year ago, he now plans to transfer all of the accumulated funds today into a money-market account that earns an APR of 1.50% compounded quarterly. If he plans to withdraw $4000 from the account at the end of each quarter...
You want to deposit a sum of money today that will enable you to withdraw 15,000...
You want to deposit a sum of money today that will enable you to withdraw 15,000 a year for six years beginning one year from today if you can deposit the funds in the bank that offers a stated annual rate of 12% compounded monthly how much must you invest today $90,000 $60,495 $61,671 $53,687 None of the above are correct
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT