Interest compounded semi annually

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Reference no: EM13815131

A sum of $25,000 is deposited into a savings account, which pays a yearly nominal 8% interest compounded semi annually. Equal annual withdrawals are to be made from the account, beginning 1 year from now and continuing forever. The maximum amount that can be withdrawn at the end of each year is approximately equal to

A) $2,250

B) $2,300

C) $2,040

D) $2,000

Reference no: EM13815131

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