Open study

is now brainly

With Brainly you can:

  • Get homework help from millions of students and moderators
  • Learn how to solve problems with step-by-step explanations
  • Share your knowledge and earn points by helping other students
  • Learn anywhere, anytime with the Brainly app!

A community for students.

providing the formula would be helpful. John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather to be able to withdraw $140 per month for the next 4 years. How much must John invest today at 8% per year compounded monthly so that his grandfather can withdraw $140 per month for the next 4 years? a) $5,714.67 b) $5,764.67 c) $5,694.67 d) $5,734.67 e) $5,724.67

See more answers at
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.

Join Brainly to access

this expert answer


To see the expert answer you'll need to create a free account at Brainly

Well, for compounding interest, we have the formula: \[ I = Pr^t \]Where \(I\) is the interest made, \(P\) is the principle (initial amount of money), \(r\) is the interest rate, and \(t\) is the number of times it's compounding. Thought this problem will require a bit more thinking.
If you want the new ammount, it's just interest plug principle.\[ P+I = P(1+r)^t \]

Not the answer you are looking for?

Search for more explanations.

Ask your own question

Other answers:

So John is making one investment which will generate 8% per year compounded monthly and his grandfather will start withdrawing $140 immediately upon the investment being made and each month after for the next 4 years?

Not the answer you are looking for?

Search for more explanations.

Ask your own question