Suppose you were given $10,000 today and deposited it into an account paying 10% per year, compounded monthly. If you know that you will need $5,000 in the account 5 years from now, what monthly withdrawal can you make from the account, beginning one month from now, that will leave the account with exactly
$5,000 in it in 5 years?
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A. B. C. D. E.A
On the BAII Plus, press 60 N, 10 divide 12 = I/Y, 10000 PV, 5000 +/- FV, CPT PMT. On the HP12C, press 60 n, 10 ENTER 12 divide i, 10000 PV, 5000 CHS FV,
PMT. Note that the answer is a negative number. This is because it is a withdrawal from the account balance, just as the $5,000 is. Make sure the BAII Plus has the value of P/Y set to 1.