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majarm majarm
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6 years ago
What is the principal invested at 8% compounded semi-annually from which monthly withdrawals of $1000.00 can be made at the beginning of each month for 10 years but deferred for 3 years?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
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6 years ago
p =   - 1 = 0.006558197
PVg (due) = 1000 (1.006558197)
   = 1000(82.89062668)(1.006558197) = $83 434.24
PV = 83,434.24 (1.006558197)-36 = 83333.65 (.790314523) = $65 939.29
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