Joe makes 12 monthly deposits of X each during a year at the beginning of each month, into a fund earning 6% interest compounded monthly. The following year Joe makes no deposits. He then continues to make monthly deposits of X + 200 each at the beginning of each month during the third year. All these deposits accumulate to an amount that is just sufficient to allow him to withdraw 1000 monthly for 2 years (24 withdrawals), with the first withdrawal two months after the last deposit. Find X.
Joe makes 12 monthly deposits of X each during a year at the beginning of each month, into a fund earning 6% interest compounded monthly. The following year Joe makes no deposits. He then continues to make monthly deposits of X + 200 each at the beginning of each month during the third year. All these deposits accumulate to an amount that is just sufficient to allow him to withdraw 1000 monthly for 2 years (24 withdrawals), with the first withdrawal two months after the last deposit. Find X.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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