You wish to have $250,000 at the end of twenty years. In the last five years,...

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You wish to have $250,000 at the end of twenty years. In thelast five years, you withdraw $1,000 annually at a rate of 3.8%compounded quarterly. During the middle ten years, you contribute$500 monthly at a rate of 2.8% compounded semi-annually. Given thisinformation, determine the initial deposit that has to be made atthe start of the first five years at a rate of 4% compoundedmonthly?

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FVIFA 1rn 1r Payments made during the mid 10 years Here r 0028 compounded semiannually r on a monthly basis 0028212 0001167 n 12 months x 10 years 120 FVIFA    See Answer
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You wish to have $250,000 at the end of twenty years. In thelast five years, you withdraw $1,000 annually at a rate of 3.8%compounded quarterly. During the middle ten years, you contribute$500 monthly at a rate of 2.8% compounded semi-annually. Given thisinformation, determine the initial deposit that has to be made atthe start of the first five years at a rate of 4% compoundedmonthly?

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