The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that
1 answer:
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Answer:
The withdraw amount is "11,227.42".
Explanation:
The given values are:
In stock account,
PMT = $820
Interest rate =
N = 300
PV = 0
In Bond account,
PMT = $420
Interest rate =
N = 300
PV = 0
Now,
By using the FV (Future value) function, the value in Stock account will be:
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=
By using the FV (Future value) function, the value in Stock account will be:
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=
After 25 years,
The value throughout the account, will be:
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=
By using the PMT function, we can find the with drawling amount. The amount will be:
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