How much can be withdrawn from the fund

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Reference no: EM132070850

Question: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside $1,200,000 in a fund to be used for modernization and remodeling. How much can be withdrawn from this fund at the beginning of each half-year for the next 5 years if the fund earns 6.5%, compounded semiannually?

(a) Decide whether the problem relates to an ordinary annuity or an annuity due.

(b) Solve the problem. (Round your answer to the nearest cent.)

Reference no: EM132070850

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