in order to help you through college your parents deposite $10000 into a bank account paying...
in order to help you through college your parents deposite $10000 into a bank account paying 4% interest rate . Starting tomorrow you plan to withdraw equal amounts from the account at the begnning of each of next 4 years. What is the most you can withdraw annually? plaese explain in detail.
a) 2547
b) 2649
c) 2755
d) 2808
Homework Answers
| PVAnnuity Due = c*((1-(1+ i)^(-n))/i)*(1 + i ) |
| C = Cash flow per period |
| i = interest rate |
| n = number of payments |
| 10000= Cash Flow*((1-(1+ 4/100)^-4)/(4/100))*(1+4/100) |
| Cash Flow = 2649 |
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