Asked by
Marquise Louis
on Dec 14, 2024
Verified
Corey has $50,000 deposited in an account earning 6.2% compounded monthly. He plans to withdraw $2,000 per month for two years. Afterwards, he plans to replenish his account by contributing $3,000 per quarter to bring his investment back to the original $50,000. Determine how many payments will be needed for the quarterly payments.
A) 15
B) 14
C) 13
D) 17
E) 11
Compounded Monthly
A method where the interest is calculated on a monthly basis and added to the principal sum, allowing the interest to grow over time through compounding.
Quarterly Payments
Payments that are made four times a year, often on a financial obligation like a loan or lease.
Withdraw
Withdrawing money from a bank account or an investment.
- Realize the influence of incremental contributions or removals on the future valuation of investment assets.
- Determine the timeline necessary to succeed in reaching a financial milestone with consistent financial inputs or outputs.
Verified Answer
GG
Learning Objectives
- Realize the influence of incremental contributions or removals on the future valuation of investment assets.
- Determine the timeline necessary to succeed in reaching a financial milestone with consistent financial inputs or outputs.
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