initially invest $5, 000 into an account, and at the end of the first year, invest another $5, 000. At the end of the third and fourth year you withdraw X from the account. For any withdrawal, there is penalty of 1% on the amount withdrawn. Find X if the account has $10, 000 in it at the end of the fifth year, and the account earns an effective annual interest rate of 7% for the the entire five years
initially invest $5, 000 into an account, and at the end of the first year, invest another $5, 000. At the end of the third and fourth year you withdraw X from the account. For any withdrawal, there is penalty of 1% on the amount withdrawn. Find X if the account has $10, 000 in it at the end of the fifth year, and the account earns an effective annual interest rate of 7% for the the entire five years
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You initially invest $5, 000 into an account, and at the end of the first year, invest another $5, 000. At the end of the third and fourth year you withdraw X from the account. For any withdrawal, there is penalty of 1% on the amount withdrawn. Find X if the account has $10, 000 in it at the end of the fifth year, and the account earns an effective annual interest rate of 7% for the the entire five years.
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