Asked by Nieajua Gonzalez on May 30, 2024
Verified
Rounding up to the nearest month, for how long will a $100,000 fund sustain beginning-of-the-month withdrawals of $700 if the fund earns 6% compounded monthly?
Compounded Monthly
A financial mechanism where interest earnings are recalculated each month, resulting in increased earnings over time due to the effect of compounding.
Withdrawals
The act of taking money out of an investment or bank account.
Fund Sustain
The capability to maintain financial resources at a certain level or to ensure the ongoing availability of funds.
- Calculate the sustainability of funds and investments over time given specific withdrawal or deposit conditions.
Verified Answer
CD
Learning Objectives
- Calculate the sustainability of funds and investments over time given specific withdrawal or deposit conditions.