John is planning to go to graduate school in a program that will take three years. john wants to have available $10,000 available each year for his school and living expenses. if he earns 6% on his investments, how much must be deposited at the start of his studies for him to withdraw $10,000 a year for three years?

Question

Charity Lara

Business

10 December, 07:25

John is planning to go to graduate school in a program that will take three years. john wants to have available $10,000 available each year for his school and living expenses. if he earns 6% on his investments, how much must be deposited at the start of his studies for him to withdraw $10,000 a year for three years?

+1

Answers (1)

Know the Answer?

Alfredo Mccarthy · Answer 1

Note: John needs to have A LOT of money to start out.

Alright, if 6% = $10,000 in the ideal situation, then we need to find the money he starts with. Do you know if this is compound interest, or simple interest?