Mm.21. ohn invests $50,000 today for a period of 15 years with a constant annually compounded interest rate of12%. At the end of the first year, John will be able to earn $6,000 in interest from this investment. He willbe wondering if he will want to take some or all of this $6,000 out to pay some of his personal debts offbecause the $50,000 principal will still be able to earn him another $6,000 interest the year after.What is the most that John can spend in equal amount out of the investment each year during theinvestment period of 15 years from today (rounded to the nearest whole number)?O a. 9,224O b. 6,000O c. 7,538O d. 8,072Oe. None of the other answers are correct

Annual amount that can withdrawn depends on the interest rate and period of investment and it also…

ohn invests $50,000 today for a period of 15 years with a constant annually compounded intere 12%. At the end of the first year, John will be able to earn $6,000 in interest from this investmen be wondering if he will want to take some or all of this $6,000 out to pay some of his personal d because the $50,000 principal will still be able to earn him another $6,000 interest the year after What is the most that John can spend in equal amount out of the investment each year during th investment period of 15 years from today (rounded to the nearest whole number)?

ohn invests $50,000 today for a period of 15 years with a constant annually compounded intere 12%. At the end of the first year, John will be able to earn $6,000 in interest from this investmen be wondering if he will want to take some or all of this $6,000 out to pay some of his personal d because the $50,000 principal will still be able to earn him another $6,000 interest the year after What is the most that John can spend in equal amount out of the investment each year during th investment period of 15 years from today (rounded to the nearest whole number)?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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