12,000 is deposited into an account earning an EAR of 4%. Starting at the end of the fourth year, annual withdrawals of 1,000 are made until the account balance at the end of a year is less than 1,000. At that time, the remaining balance is withdrawn and the account is closed. How many full 1000 withdrawals were made?
EAR is the actual return of any given amount due to compounding 12000+(0.04) = 480... View the full answer
- EAR - Effective Annual Rate
- Apr 02, 2018 at 8:20pm