A person invests 25

Economics Nov 28, 2020

A person invests 25.000 TL now into a savings account that pays 6% per year He will withdraw the money in uniform annual amounts at the end of each year for 10 years to cover yearly expenses of his car maintenance. Nothing will be left at the end of 10 years What are the annual uniform withdrawals of this investment?

Expert Solution

Ans

Equivalent annual uniform withdrawal

= 25000 × (A/P, 6%, 10)

= 25000 × 0.135867

= $3396.675

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