our grandparents just gave you $40,000 for your 21st birthday. You want to set aside some of that money so you can withdraw $1,500 per month for living experises for the 20 months you attend BCIT and still have $7,000 left at the end of the 20 months to pay for a trip after graduation. Your first withdrawal will be 1(1)/(2) years from now when you start BCIT. Assume both the money set aside and the annuity earns 65% compounded quarterly. (a) How much of the $40,000 must you set aside? (b) How much interest will you earn

our grandparents just gave you $40,000 for your 21st birthday. You want to set aside some of that money so you can withdraw $1,500 per month for living experises for the 20 months you attend BCIT and still have $7,000 left at the end of the 20 months to pay for a trip after graduation. Your first withdrawal will be 1(1)/(2) years from now when you start BCIT. Assume both the money set aside and the annuity earns 65% compounded quarterly. (a) How much of the $40,000 must you set aside? (b) How much interest will you earn

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 33P

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