You Wish to Have $400,000 at the End of Twenty-Five

question 200

Short Answer

You wish to have $400,000 at the end of twenty-five years. In the last ten years, you contribute $1,000 semi-annually at a rate of 5.8% compounded monthly. During the middle ten years, you withdraw $750 quarterly at a rate of 4.5% compounded annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly.

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Definitions:

Levator Ani

A group of muscles situated in the pelvis that support the pelvic organs and assist in maintaining continence.

Pubococcygeus

A muscle of the pelvic floor that stretches from the pubic bone to the coccyx and is important for pelvic floor health and function.

Iliococcygeus

A muscle part of the pelvic floor that helps support the organs located in the pelvis.

Menarche

The onset of menstruation in girls, marking the beginning of reproductive capability.