How much was each semi-annual withdrawal in year

Assignment Help Financial Management
Reference no: EM131966659

Parents deposit $9,000 into a savings account at the end of each year for 22 years to help their child pay for college. The savings account pays 5% 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 $6,000 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: EM131966659

Questions Cloud

What will be the new portfolio beta : What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.60?
Sample proportions of people with diabetes : In repeated random samples of n = 800 Americans, 90% of sample proportions of people with diabetes would fall within ±______ from p.
Compare figures and event described in two myths or episodes : Compare and contrast the figures and events described in the two myths or episodes, and demonstrate how they contain important insight.
Research on national infrastructure initiatives : MN503 - Overview of Internetworking - Network requirement analysis and plan - Using the uploaded case study on the Moodle titled GLOBAL BROADBAND ACCESS
How much was each semi-annual withdrawal in year : How much was each semi-annual withdrawal in year 19 through 22?
What is hastings required return : Calculate the money multiplier and what is the total money supply? what is Hastings ‘ required return?
Explain the relationship between risk aversion : Explain the relationship between risk aversion, internal interest rates, and the prices that people with different risk aversions would be willing to pay
What are the three categories of business analytics : Define quantitative analysis. What are some of the organizations that support the use of the scientific approach? Why?
The information on recent sale of part of the bond issue : Below the detail of the bond is the information on a recent sale of part of the bond issue.

Reviews

Write a Review

Financial Management Questions & Answers

  What are the total shortage costs

ABC Company sells 2,412 chairs a year at an average price per chair of $182. The carrying cost per unit is $22.78. The company orders 344 chairs at a time and has a fixed order cost of $113.3 per order. The chairs are sold out before they are restock..

  List the objectives that banks have for buying securities

List the objectives that banks have for buying securities. Explain the motive for each.

  Federal income taxes payable or refund

What is the Fergusons’ 2017 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?

  Construct amortization schedule for bond

The coupons are non-level and increase at a rate of 3% per year. Construct the amortization schedule for the bond.

  Identified an investment project with the cash flow

Havana, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,040 2 1,270 3 1,490 4 2,230. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? What is the future value at..

  How many years will it take to reach your goal

You have $17,745.95 in a brokerage account, How many years will it take to reach your goal?

  Should they view this strictly as a loss on revenue

If all 25 buyers take the discount, how much potential revenue did BSI miss out on? Should they view this strictly as a loss on revenue?

  What is the year one cash flow

Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow?

  How much was paid to the common stockholders

The preferred stock was two years in arrears prior to the current year. How much was paid to the common stockholders?

  Important components in regards to financial management

What are the most important components in regards to financial management?

  Use leveraged or unleveraged capital structure

Kelso Electric is debating whether to use a leveraged or an unleveraged capital structure. What is the break-even level of EBIT between these two options?

  Negotiating for the purchase of new piece of equipment

Lexington Manufacturing, Inc. (Lexington) is negotiating for the purchase of a new piece of equipment for its current operations. Lexington has received an offer which specifies that the equipment could be purchased for $80,000. The new equipment wil..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd