Starting in 5 Years You Want to Be Able to Withdraw

question 78

Multiple Choice

Starting in 5 years you want to be able to withdraw $6220 every six months for 7.5 years. You want to deposit a single amount immediately and then let it grow at a rate of 4.88% compounded quarterly. How much do you have deposit?

• A) $61 216.62
• B) $62 216.62
• C) $62 116.62
• D) $61 126.62
• E) $62 226.62

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Definitions:

Ending Inventory

The overall price of items available for selling at the end of a fiscal period.

Inventory Units

Quantities of goods held by a business for the purpose of sale or production.

Purchase Discounts

Reductions in the purchase price of goods, usually provided by a supplier to the buyer for early payment or bulk buying.

Net Price Method

A pricing strategy that considers the net cost of a product after deducting any discounts or allowances.