Your grandmother gives you $25,000 for

Your grandmother gives you $25,000 for

Your grandmother gives you $25,000 for graduation. If interest rates are 0.50% per month:

a) What is the minimum amount you can withdraw monthly in equal installments over a period of 5 years if you make the first withdrawal in one month?

 

Your grandmother gives you $25,000 for

b) What is the maximum amount you can withdraw monthly in equal installments over a period of 5 years if you make the first withdrawal in one month but want to leave $5000 in the bank at the end of the 5 years?

c) If you plan to withdraw $500 per month, with the first withdrawal taking place in one month, how long will your graduation gift last?

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