John already has $19,598 in his savings account. He plans to make contributions of $753.35 atthe end of every three months, until he reaches $47,100. The interest rate is 9.12%compounded annually.a) In how many years and months will he reach his goal? Round up to the next month.P/Y =N =He will reach his goal inA year(s) andA month(s).b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. Forhow many years and months can he make the withdrawals? Round up to the next month.P/Y=A/N =AHe will withdraw forAA/ year(s) andA month(s).

The banks generally offer compounding interest, The interest is earned on interest and the interest…

John already has $19,598 in his savings account. He plans to make contributions of $753.35 at the end of every three months, until he reaches $47,100. The interest rate is 9.12% compounded annually. a) In how many years and months will he reach his goal? Round up to the next month. P/Y= A/ N = He will reach his goal in A year(s) and A month(s). b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. For how many years and months can he make the withdrawals? Round up to the next month. P/Y= A/ N= A He will withdraw for A Ay year(s) and month(s).

John already has $19,598 in his savings account. He plans to make contributions of $753.35 at the end of every three months, until he reaches $47,100. The interest rate is 9.12% compounded annually. a) In how many years and months will he reach his goal? Round up to the next month. P/Y= A/ N = He will reach his goal in A year(s) and A month(s). b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. For how many years and months can he make the withdrawals? Round up to the next month. P/Y= A/ N= A He will withdraw for A Ay year(s) and month(s).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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