Present Values, Future values and monthly compounding of Chris's investments
On January 1st 1990, Chris invested $4,000,000 at a rate of 6% p.a. compounded monthly. Commencing with the first withdrawal on January 31st 1997, he has withdrawn $117, 572 at the end of each month to pay for his medical expenses. If this continues, on what date will the money run out?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/present-values-future-values-and-monthly-compounding-of-chriss-investments-33p
...t date will the money run out?
Find the present value (PV) at January 31st 1997
FV = PV (1 + r)n
= 4,000,000 (1 + 0.06/12)12
* PV refers to the initial investment of $4,000,000
* FV is the value of investment at 31st January 1997
* We ...