You Will Deposit $2,000 Today

Multiple Choice

You will deposit $2,000 today. It will grow for five years at 12% interest, but compounded semiannually. You will then withdraw the funds annually over the next four years at the end of each year, with an annual interest rate of 8%. Your annual withdrawal will be approximately ________.

A) $2,340
B) $4,332
C) $797
D) $1,082