You deposit $3,000 at the beginning of every year for 30 years into an investment that earns 8.5%. At the end of 30 years, you put the investment into an account that earns 5.5%. This account will be used to fund a 25-year annuity. If you take the money out at the beginning of every year, what is the annual annuity amount you will withdraw yearly for 25 years?
You deposit $3,000 at the beginning of every year for 30 years into an investment that earns 8.5%. At the end of 30 years, you put the investment into an account that earns 5.5%. This account will be used to fund a 25-year annuity. If you take the money out at the beginning of every year, what is the annual annuity amount you will withdraw yearly for 25 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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