Answered: On Jan. 1, deposit $5000 that pays 8%…

On Jan. 1, deposit $5000 that pays 8% nominal annual interest, compounded quarterly. Withdraw in 5 equal yearly sums, beginning December 31 of the first year. How much is withdrawn each year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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On Jan. 1, deposit $5000 that pays 8% nominal annual interest, compounded quarterly. Withdraw in 5 equal yearly sums, beginning December 31 of the first year. How much is withdrawn each year?

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