Jerome Is Planning on Contributing $5,000 at the End of Each

question 273

Multiple Choice

Jerome is planning on contributing $5,000 at the end of each semi-annual period for 8 years in an investment providing 8.4% compounded quarterly. At the end of this time, Jerome plans to reinvest this amount in another investment that will provide him with the opportunity to withdraw $1,500 per month over 5 years and have $10,000 remaining. Based on monthly compounding, determine what the rate of interest that will achieve this goal.

• A) 3.77%
• B) 4.07%
• C) 4.37%
• D) 4.77%
• E) 5.07%

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