What will be the amount of this final smaller withdrawal

Assignment Help Financial Management

Reference no: EM132005780

Suppose that your grandparents give you 22000 dollars today as a graduation gift, and you deposit this money into an account that will earn an effective interest rate of 7.4 percent. You plan to make annual withdrawals from the account for as long as you can, with the first withdrawal being one year from now. Each withdrawal will be 5200 dollars, except for the last one which will be a smaller amount. What will be the amount of this final smaller withdrawal?

Reference no: EM132005780

Questions Cloud

Financed is the investor sole asset : If the real estate investment that is being financed is the investor's sole asset, the investor's debt-to-equity ratio will be _

Purpose of collateralized mortgage obligations : What is the principal purpose of collateralized mortgage obligations?

Contemplating the replacement of one of its machines : Drexler Company is contemplating the replacement of one of its machines with a newer and more efficient one.

What is your total return for last year : You bought a share of 3 percent preferred stock for $97.06 last year. What is your total return for last year?

What will be the amount of this final smaller withdrawal : Each withdrawal will be 5200 dollars, except for the last one which will be a smaller amount. What will be the amount of this final smaller withdrawal?

What is the amount of the cash flow to creditors : What is the amount of the cash flow to creditors? The revenue a property is expected to generate after adjusting for operating expenses,

According to equity theory : According to equity theory, people. One of the primary differences between attitudes and personality is that.

Simple and geometric average returns of both stocks : What are the simple and geometric average returns of both stocks? Which stock is riskier based on the returns in the past 10 years?

Calculate amount of loan from star bank-payment amount : Calculate the amount of the loan from star bank, payment amount and effective interest rate.

User Account

All Pages