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?

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Esmeralda Maynard

16 September, 07:44

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?

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Jewel Bond · 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?