MrA Deposits $5000 Today in a Fund Earning Interest at J₂

Mr.A deposits $5000 today in a fund earning interest at j₂ = 6%.He wishes to withdraw $490 every 6 months for as long as possible.He will make his first withdrawal exactly 2 years from today.When will he make the final smaller concluding (drop) withdrawal?

A) End of 6.5 years
B) End of 7 years
C) End of 8.5 years
D) End of 9 years

Correct Answer:

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