You want to be able to withdraw $500 from a savings account at the end of...

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You want to be able to withdraw $500 from a savings account at the end of year 1, $700 at the end of year 2, $900 at the end of year 3, $1,100 at the end of year 4 and $1,300 at the end of year 5 (i.e., A = $500 and G = $200). How much money must be on deposit right now, at the end of year 0, to just deplete the account after the 5 withdrawals if interest is 5% compounded annually? You want to be able to withdraw $500 from a savings account at the end of year 1, $700 at the end of year 2, $900 at the end of year 3, $1,100 at the end of year 4 and $1,300 at the end of year 5 (i.e., A = $500 and G = $200). How much money must be on deposit right now, at the end of year 0, to just deplete the account after the 5 withdrawals if interest is 5% compounded annually?

Answer rating: 100% (QA)

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