Derek currently has $11,173.00 in an account that pays 4.00%. He will withdraw $5,586.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $11173.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 22.00 years from today?

Derek can deposit $226.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,537.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?

Answer rating: 100% (QA)

Since Derek withdraws 558600 every other year the balance of the account decreases by ... View the full answer