On January 1, 2006, a graduate student developed a 5-year financial plan which would provide enough...

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On January 1, 2006, a graduate student developed a 5-year financial plan which would provide enough money at the end of her graduate work (January 1, 2011) to open a business of her own. Her plan was to deposit $8,000 per year for 5 years, starting immediately, into an account paying 10 percent compounded annually. Her activities proceeded according to plan except that at the end of her third year (1/1/09) she withdrew $5,000 to take a Caribbean cruise, at the end of the fourth year (1/1/10) she withdrew $5,000 to buy a used Toyota car, and at the end of the fifth year (1/1/11) she had to withdraw $5,000 to pay to have her dissertation typed. At the end of the fifth year, by how much her account was less than the amount she had originally planned on? On January 1, 2006, a graduate student developed a 5-year financial plan which would provide enough money at the end of her graduate work (January 1, 2011) to open a business of her own. Her plan was to deposit $8,000 per year for 5 years, starting immediately, into an account paying 10 percent compounded annually. Her activities proceeded according to plan except that at the end of her third year (1/1/09) she withdrew $5,000 to take a Caribbean cruise, at the end of the fourth year (1/1/10) she withdrew $5,000 to buy a used Toyota car, and at the end of the fifth year (1/1/11) she had to withdraw $5,000 to pay to have her dissertation typed. At the end of the fifth year, by how much her account was less than the amount she had originally planned on?

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The future value FV of a series of deposits can be calculated using the form... View the full answer