You have $28,000 in an account earning an interest rate of 6%

You have $28,000 in an account earning an interest rate of 6% what are the equal beginning of month with drawls you can make from this account such that it is completely depleted with the last withdrawal at the beginning of the last month in 16 years round to the nearest cent

Expert Solution

So Equal withdrwals for the next 16 years with each withdrawal at the beginning of the month is $ 226.07

Formulae

jeff jeffy answered 2 years ago

You have $25,000 in an account earning an interest rate of 6%. What are the equal...

You have $25,000 in an account earning an interest rate of 6%. What are the equal beginning-of-month withdrawals you can make from this account such that it is completely depleted with the last withdrawal at the beginning of the last month in 15 years? Round to the nearest cent. [Hint: The amount in the account today is the PV of an annuity due where the withdrawals are the annuity cash flows. There will be a total of 15 x 12...

You have $39,000 in an account earning an interest rate of 4%. What are the equal...

You have $39,000 in an account earning an interest rate of 4%. What are the equal beginning-of-month withdrawals you can make from this account such that it is completely depleted with the last withdrawal at the beginning of the last month in 22 years? Round to the nearest cent. [Hint: The amount in the account today is the PV of an annuity due where the withdrawals are the annuity cash flows. There will be a total of 22 x 12...

You have $45,000 in an account earning an interest rate of 3%. What are the equal...

You have $45,000 in an account earning an interest rate of 3%. What are the equal beginning-of-month withdrawals you can make from this account before it is depleted in 25 years? Round to the nearest cent.

If you deposit $45,000 into an account earning 6% interest, compounded monthly. And in addition to...

If you deposit $45,000 into an account earning 6% interest, compounded monthly. And in addition to the initial investment, save $600 each month, how many months will it take to save $67,000? Please explain with an Excel function if possible?

If you invest $3,130.35 in an account earning an annual interest rate of 2.33% compounded quarterly,...

If you invest $3,130.35 in an account earning an annual interest rate of 2.33% compounded quarterly, how much will be in your account after 2 years? After 11 years?

You put $2,500 into an account earning interest at a rate of 8% per year. How...

You put $2,500 into an account earning interest at a rate of 8% per year. How much money will you have after 8 years, assuming simple interest and assuming no withdrawals? How much money will you have assuming compound interest and no withdrawals? (4 pts.) Suppose you have an investment that pays 8% per year, compounded quarterly. What interest rate are you actually getting per year? (2 pts.) What is the present value of $2,500 received in 7 years with...

You put $2,500 into an account earning interest at a rate of 8% per year. How...

You put $2,500 into an account earning interest at a rate of 8% per year. How much money will you have after 8 years, assuming simple interest and assuming no withdrawals? How much money will you have assuming compound interest and no withdrawals? (4 pts.) Suppose you have an investment that pays 8% per year, compounded quarterly. What interest rate are you actually getting per year? (2 pts.) What is the present value of $2,500 received in 7 years with...

You deposit $600 in an account earning 6% coumpound interest for 3 years. Find the future...

You deposit $600 in an account earning 6% coumpound interest for 3 years. Find the future value and the interest earned for each of the following compounding frequencies. Use the Bankers' Rule for daily compounding. Frequency Future Value Interest Earned Annually: Semiannually: Quarterly: Monthly: Daily:

how much will you have in your account earning 6% p.y.c.d if you deposit $1,200 at...

how much will you have in your account earning 6% p.y.c.d if you deposit $1,200 at the end of the first quarter and keep increasing the amount by 1% every quarter over a five-year period?

You deposit $600 in an account earning 3% interest compounded annually. How much will you have...

You deposit $600 in an account earning 3% interest compounded annually. How much will you have in the account in 15 years?

Question

You have $28,000 in an account earning an interest rate of 6%

Solutions

Expert Solution

Related Solutions

You have $25,000 in an account earning an interest rate of 6%. What are the equal...

You have $39,000 in an account earning an interest rate of 4%. What are the equal...

You have $45,000 in an account earning an interest rate of 3%. What are the equal...

If you deposit $45,000 into an account earning 6% interest, compounded monthly. And in addition to...

If you invest $3,130.35 in an account earning an annual interest rate of 2.33% compounded quarterly,...

You put $2,500 into an account earning interest at a rate of 8% per year. How...

You put $2,500 into an account earning interest at a rate of 8% per year. How...

You deposit $600 in an account earning 6% coumpound interest for 3 years. Find the future...

how much will you have in your account earning 6% p.y.c.d if you deposit $1,200 at...

You deposit $600 in an account earning 3% interest compounded annually. How much will you have...