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:

Freud

Freud, a neurologist from Austria, developed the psychoanalytic method, which involves treating mental illnesses through dialogue between an analyst and the person seeking help.

Anal Stage

In Freudian psychology, the second stage of psychosexual development, occurring between about 18 months and three years of age, during which children find pleasure in controlling bowel movements.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, often involving ritual observances and a moral code governing the conduct of human affairs.

Neo-Freudian

Pertains to theorists who were influenced by Sigmund Freud but adapted his ideas, focusing more on social and cultural factors.