Question

A sum of $10,000 is gaining interest at 8% a year compounded monthly. What is the future worth if you withdrew $25 a month for one year?

Answer 1

Period (Month wise)	Principal Amount	Interest rate	Interest Amount	Withdrawl	Final Amount
1	10000	0.0067	66.667	25	10,041.67
2	10,041.67	0.0067	66.944	25	10,083.61
3	10,083.61	0.0067	67.224	25	10,125.84
4	10,125.84	0.0067	67.506	25	10,168.34
5	10,168.34	0.0067	67.789	25	10,211.13
6	10,211.13	0.0067	68.074	25	10,254.20
7	10,254.20	0.0067	68.361	25	10,297.57
8	10,297.57	0.0067	68.650	25	10,341.22
9	10,341.22	0.0067	68.941	25	10,385.16
10	10,385.16	0.0067	69.234	25	10,429.39
11	10,429.39	0.0067	69.529	25	10,473.92
12	10,473.92	0.0067	69.826	25	10,518.75

All amounts are in dollars.

Final Amount after 1 year is $10518.75.

Interest Rate = Yearly Interest rate/ Number of months
Interest Amount = Interest Rate* Principal Amount
Final Amount = Principal Amount + Interest Amount - Withdrawl