You wish to have $400,000 at the end of twenty-five years. In the last ten years, you contribute $1,000 semi-annually at a rate of 5.8% compounded monthly. During the middle ten years, you withdraw $750 quarterly at a rate of 4.5% compounded annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly.
A) $115,150.00
B) $120,150.00
C) $125,150.00
D) $130,150.00
E) $135,150.00

Question

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The Answer of You wish to have $400,000 at the end of twenty-five years. In the last ten years, you contribute $1,000 semi-annually at a rate of 5.8% compounded monthly. During the middle ten years, you withdraw $750 quarterly at a rate of 4.5% compounded annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly.
A) $115,150.00
B) $120,150.00
C) $125,150.00
D) $130,150.00
E) $135,150.00

You Wish to Have $400,000 at the End of Twenty-Five