You deposit $$1,200$ in an account each year for $5$ years, starting at the end of Year $1.$ At the end of Year $5,$ you withdraw half of the account balance. You then deposit $$3,300$ each year for five more years $($starting at the end of Year $6).$ At the end of Year $15,$ you withdraw the entire amount. There are no additional payments in Years $11$ through $15.$ The account earns $8\%$ per year.

a$.$ How much is withdrawn at the end of Year $5?$

b$.$ How much is withdrawn at the end of Year $15?$

Answer rating: 100% (QA)

To solve this problem we will first calculate the future value of the account at the end of Year 5 a... View the full answer