You Wish to Have $200,000 at the End of Twenty

question 162

Multiple Choice

You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000 annually at a rate of 3.8% compounded quarterly. During the middle ten years, you contribute $500 monthly at a rate of 2.8% compounded semi-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.

• A) $13,056.65
• B) $12,056.65
• C) $11,056.65
• D) $10,056.65
• E) $9,056.65

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