Irina’s bank deposit balance is $1 million. She will need to withdraw $500,000 next year, but she will be able to make another deposit of $100,000 at the end of the second year. She needs annuity payments for three years from the end of the third year until the end of the fifth year. Assuming the interest rate on her deposit is 10%, how much will be her annuity payments during the year 3-5?

Answer rating: 100% (QA)

Calculate the Future Value FV of her bank deposit at the end of the second year This is the balance ... View the full answer