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Henry Cisco is planning to make two deposits, $25,000 now and $30,000 at the end of six years. He wants to withdraw C each year for the first six years and (C + $1,000) each year for the next six years. Determine the value of C if the deposits earn 10% interest compounded annually.

2007-09-15 18:31:31 · 1 answers · asked by Amanda 2 in Education & Reference Homework Help

1 answers

You do it. It is easy!
You have to make a number of calculations.
Use the formula interest earned = C x R x T
where C = capital, R = interest rate and T = time
You are going to have to calculate the C for each year by deducting withdrawals and adding on the interest.
Have fun (I'm not doing it for you)

2007-09-16 23:16:16 · answer #1 · answered by jemhasb 7 · 0 1

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