A university has a “sabbatical plan” for its faculty whereby six years are on campus, and the next year is off campus. Salary in the sabbatical year is not fully covered, however. A professor estimates she will have to spend a total of $15,000 of her own money in equal monthly withdrawals of $1,250 in the sabbatical year. She will continue to use her current bank during the off year. The bank pays 5% interest, compounded continuously.
If she makes uniform monthly deposits to her bank over the six-year period, what amount must she deposit each month to cover her sabbatical year expenditure? Draw the cash flow diagram from the professor’s viewpoint.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.