Three years after 25 years of saving. Lucy withdrew $9,500 each year for a period of 4 years. In the fifth, sixth, and seventh years, she only withdrew $7,000 per year. In the eighth year, she decided to withdraw the remaining money in her account. If Lucy has saved $1,300 each year with an interest rate of 5% per year compounded monthly throughout the whole period, what was the amount she withdrew at the end of the eighth year? Draw a cash flow diagram for the given transactions and show all of your calculations.

Answer rating: 100% (QA)

Cash Flow Diagram Year 0 1 2 3 4 5 6 7 8 Inflow 1300 1300 1300 1300 1300 Outflow 9500 9500 9500 7000 ... View the full answer