How much was each semi-annual withdrawal

Reference no: EM131956037

Problem

Parents deposit $6,000 into a savings account at the end of each year for 22 years to help their child pay for college. The savings account pays 7% interest per year, compounded monthly. The child withdrawals an equal sum twice per year while in college (years 19 through 22). After the last withdrawal at the end of year 22, there is $5,000 remaining in the account. How much was each semi-annual withdrawal in year 19 through 22? Express your answer in $ to the nearest $100.

Reference no: EM131956037

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