How much can you withdraw each month

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Reference no: EM131969351

1. You've won a lottery that pays you $2,000,000 today. If you invest the $2,000,000 today in an investment account that earns 4% APR (compounded monthly), how much can you withdraw each month, starting in 6 months (the same amount each month) for 360 months?

$9,709

$9,548

$5,649

$5,556

No correct answer is given

2. You've just purchased a brand new car for $40,000. The property tax on the car will be $630 due in 12 months. How much would you have to invest each month, for 12 months, starting next month (the same amount each month) to have just enough for the property tax in 12 months if your savings account earns 2% APR (compounded monthly)?

$52.02

$53.75

$43.28

No correct answer is given

$48.02

Reference no: EM131969351

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