You deposited $20,000 in a bank on January 1, 2020. You will withdraw $4,000 dollars once...

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You deposited $20,000 in a bank on January 1, 2020. You will withdraw $4,000 dollars once a year, starting on January 1, 2022. The last payment may be less than $4,000. The interest rate is 9% compounded annually. (a) Calculate the value of the deposit as of January 1, 2021. (2 pts) (b) How many withdrawal of $4,000 will be made? (3 pts) (c) Calculate the last withdrawal amount. (5 pts) You deposited $20,000 in a bank on January 1, 2020. You will withdraw $4,000 dollars once a year, starting on January 1, 2022. The last payment may be less than $4,000. The interest rate is 9% compounded annually. (a) Calculate the value of the deposit as of January 1, 2021. (2 pts) (b) How many withdrawal of $4,000 will be made? (3 pts) (c) Calculate the last withdrawal amount. (5 pts)

Answer rating: 100% (QA)

To solve this problem we need to use the compound interest formula and the concept of annuity withdr... View the full answer