How much money can be withdrawn from the account

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Question -

1. You can afford to invest $150 per month in an annuity that earns 4% per year, compounded monthly. How long will it take before your investment is worth $6000?

2. You invested your summer earnings into an annuity from which you can draw expenses while you are at university. If you need to withdraw $1200 each month for 9 months of university, how much do you need to invest in an account, earning 6% per year, compounded semi-annually, in order to cover your expenses?

3. If $25000 is invested into an account paying 4.5% per year, compounded quarterly, how much money can be withdrawn from the account every two months for the next 6 years?

Reference no: EM132601608

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