Interest compounded semi-annually


Problem:

You will deposit $2,000 today. It will grow for six years at 10% interest compounded semi-annually. You will then withdraw the funds annually over the next four years at the end of each year. The annual interest rate is 8%. Your annual withdrawal will be approximately ______.

$2,340

$4,332

$797

$1,085

Note: Explain all steps comprehensively.

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Finance Basics: Interest compounded semi-annually
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