You will deposit $10,000 today. It will grow for 10 years at 10% interest compounded monthly....

You will deposit $10,000 today. It will grow for 10 years at 10% interest compounded monthly. You will then withdraw the funds quarterly over the next 4 years. The annual interest rate over those 4 years is 8%. Your quarterly withdrawal will be
A. $1691.90.
B. $1993.74.
C. $1789.37.
D. $660.87.

Solutions

Expert Solution

Calculate the future value as follows:

Future value $27,070.41491

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Calculate the quarterly payment as follows:

Quarterly payment $1,993.74.

Answer: Option B

jeff jeffy answered 8 months ago

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