EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 5, Problem 25P
Summary Introduction

To determine: The account balance at the end of 10th year.

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You deposit $4,500 per year at the end of each of the next 25 years into an account that pays  10 percent compounded annually. How much could you withdraw at the end of each of the 20  years following your last deposit? (The 25th and last deposit is made at the beginning of the 20- year period. The first withdrawal is made at the end of the first year in the 20-year period.)
You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays a nominal annual rate of 8% compounded monthly?
You invest $3,000 in a Certificate of Deposit paying an annual compound interest of 1.26% for 10 years and then move it into a savings account that pays 0.70% interest compounded annually. What is the final balance in your account at the end of 18 years?
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