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In preparation for your college degree, Grandma decides to put 120 dollars every month into an account paying 4.4 percent compounded monthly. She deposits the money into an account over 24 years, the last deposit being the day you start college (you may assume that she made 12 deposits during the final year). For the next 5 years of college, you withdraw an equal sum of money from the same account, starting exactly one month after the day you start college. How much will you be able to withdraw each month so that at the end of the 5 years, there is no money leftover?

 Oct 6, 2015
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Grandma will have $61,177.15 after 24 years. If this amount was to be withdrawn monthy for the following 5 years, then the student could withdraw $1,137.75 every month for 60 months, provided the fund continues to earn 4.4% monthly compound.

 Oct 6, 2015

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