How much money must Brock Spack have on deposit today at the Bridgeview Community Bank if he
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Question:
How much money must Brock Spack have on deposit today at the Bridgeview Community Bank if he wants to be able to withdraw $5,750 at the beginning of each year forever and he can earn a 3.6% average annual rate of return on his account's balance? [Question 4 that follows involves a perpetuity, or stream of unending payments, that will occur at the beginning of each semiannual period.]
A. $5,550.19
B. $165,472.22
c. $159,722.22
D. $5,957.00
E. $20,700.00
Related Book For
Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science
ISBN: 978-0324656633
5th edition
Authors: Cliff T. Ragsdale
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