Jim makes a $1,000 deposit in an account paying 4% interest per year. He would like...

Question

Question

Jim makes a $1,000 deposit in an account paying 4% interest per year. He would like to withdraw two equal amounts: in one year and in two years. The amount Jim should withdraw in one year such that he will have the same amount at the end of the second year is close to:
- a. 423
- b. 389
- c. 530
- d. 637

Answer 1

Answer #1

The correct option is C.) 530

L nn al Amont = 1000 Inft @ Iyear = 40 Let u be the amount of withdrawel. then (1000 +40 x X104% = n . Where loyy. is L multi

Answer 2

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