Suppose John would like to withdraw $400 from his bank account for each of the next...
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Suppose John would like to withdraw $400 from his bank account for each of the next 40 years. At the end of the 41st year, he would like to hand over $10,000 to his kids. How much should he have in his bank account today, assuming an interest rate of 8%? Draw a timeline. Suppose John would like to withdraw $400 from his bank account for each of the next 40 years. At the end of the 41st year, he would like to hand over $10,000 to his kids. How much should he have in his bank account today, assuming an interest rate of 8%? Draw a timeline.
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Steps Step 1 of 2 We may utilise the idea of the present value of future cash flows to determine how ... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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