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Question
Jon plans to retire in 5 years and is to receive $10000 at the end of each semiannual period for 15 years. Find the shortage in 5 years if he deposits $12000 at the end of each semiannual period. Assume his deposits earn 8% compounded semiannually. answer is $28,847.04 I am not sure how to arrive at this answer.
I think the question is misleading, and I don't get your answer...
From the qns, it seems Jon is depositing 12000 semiannually for 5 years and withdraw 10000 semiannually for the next 15 years, and it asks for the shortage if he were to keep withdrawing until the end of the 20 years. My calculations showed there wasn't any shortage at all!
BTW, 8% semiannual interest? Geez, in a not-so-crazy country that's only possible for loans, not bank account.
Pls include a follow-up if the actual interpretation is different.
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Answers by Expert:
Chen Min
Expertise
All the conceptual questions, pure math & basic stats alike I am good at answering your algebra (including logarithm, functions, trigonometry) and geometry questions. I can also provide to you a firm understanding into basic calculus and other mathematical ideas and concepts. You can either ask questions in English or Chinese. Physics Qns that require rigorous math are also welcomed Important:Please avoid asking me questions related to economics.After all, I am only a secondary school student
Experience
A lot of participation in Math Olympiad Competition with numerous awards (Not always gold, though) CMO Gold, SMO Silver, SPhO Gold
Education/Credentials
So far, nothing.
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