Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in december 2022, the fed raised interest rates to

In December 2022, the Fed raised interest rates to their highest levels in 15 years....

50.1K

Verified Solution

Question

Accounting

In December 2022, the Fed raised interest rates to their highest levels in 15 years. This makes borrowing more expensive, but makes savings more valuable. After years of near-zero interest rates on savings accounts, many banks are offering savings rates of nearly 4%. This is a pretty good risk-free return. Suppose that you deposit $11281 into a savings account that earns 4%. If interest rates do not decrease and you you withdraw your money in 37 years, what is your minimum withdrawal? In other words, how much will you withdraw if interest rates stay at 4%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students