Question

Starting six months after her grandson Robin's birth, Mrs. Devine made deposits of $240 into a trust fund every six months until Robin was twenty-one years old. The trust fund provides for equal withdrawals at the end of each six months for four years, beginning six months after the last deposit. If interest is 5.87% compounded semi-annually, how much will Robin receive every six months?

Robin will receive $___ ?

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

=240/(5.87%/2)*((1+5.87%/2)^(2*21)-1)*(5.87%/2)/(1-1/(1+5.87%/2)^(2*4))
=2753.39657