Question

Derek currently has $11,714.00 in an account that pays 5.00%. He will withdraw $5,458.00 every other year beginning next year until he has taken 4.00 withdrawals. He will deposit $11714.0 every other year beginning two years from today until he has made 4.0 deposits. How much will be in the account 22.00 years from today?

Answer format: Currency: Round to: 2 decimal places.

Derek can deposit $294.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,445.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?

Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

Answer 1

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