Savings account at the end of each year

Assignment Help Financial Management

Reference no: EM131013636

Parents deposit $5,000 into a savings account at the end of each year for 22 years to help their child pay for college. The savings account pays 6% 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 $7,000 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: EM131013636

Questions Cloud

Charged when a financial transaction occurs : The fee that is charged when a financial transaction occurs, such as selling a house or making an investment. For example, the transaction fee for purchasing or selling stock consists of the money that must be paid to the stockbroker who actually pur..

What are the different kinds of magnetic materials : State the relationship between magnetization current density and magnetic flux density. How is it taken into account in Maxwell's equations? What is the revised definition of H?

How might movie witness be related to american literature : How might the movie Witness be related to American Literature? Conjecture is fine--there is no right answer

What is the point elasticity : If P=100 - 2Q, and P=80, what is the point elasticity?You sell bracelets online. The demand for these bracelets is:P=120 - 2Q

Savings account at the end of each year : Parents deposit $5,000 into a savings account at the end of each year for 22 years to help their child pay for college. The savings account pays 6% interest per year, compounded monthly. The child withdrawals an equal sum twice per year while in coll..

Installation of an automatic telephone switchboard : The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator's position. The class of service provided by the new equipment i..

Briefly describe the phenomenon of magnetization : State the relationship between polarization current density and electric field intensity. How is it taken into account in Maxwell's equations? What is the revised definition of D?

Implement the comparison operations : This is first part of a two-part project in which you will build a simple, but complete computer in Logisim. For this part, you will build three components that will be key parts of the overall computer design.

Maintenance and operations costs for a piece of equipment : The maintenance and operations costs for a piece of equipment are estimated to be $700 the first month and increase by $20 per month over the equipment's 3 year life. For budgeting purposes, the owner wants to set aside a uniform amount each month to..

User Account

All Pages