Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest compounded yearly. They want to spend all of it before they die. If they plan to live 15 more years, how much should they withdraw at the end of each year to accomplish their goal?
Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest compounded yearly. They want to spend all of it before they die. If they plan to live 15 more years, how much should they withdraw at the end of each year to accomplish their goal?
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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Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest compounded yearly. They want to spend all of it before they die. If they plan to live 15 more years, how much should they withdraw at the end of each year to accomplish their goal?
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An inflow or outflow amount that happens at each period of a financial stream is known as a PMT or periodic payment.
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