Question

1. Now, assume that at the end of 8 years you take out $65,000 from the account. What is the account balance at the end of 15 years?

The amount in the beggining account is 916206.92

You have a sub-contracting job with a local manufacturing firm. You receive end-of-year payments of $30,000/year for next 15 years. You deposit all that money in a bank that pays interest at 9.5%.

(a) What will be your balance at the end of 15 years?

(b) Now, assume that at the end of 8 years you take out $65,000 from the account. What is the account balance at the end of 15 years?

Answer 1

• The person have  opening an account in the bank, they having bank giving intrest rate to the customer on depending upon the deposit of money in the bank.
• they bank gives $65, 000 the end of the 8 years, if the beggining of the year account of bank 916206.92
• the is find out the rate of return, hence the formula using to find out the intrest as given below

1. where :   

A=P(1+r)^n

A= value of future

p= principal rate

r= inrest rate

n = number of years

2. hence :

A = 6500/9.5*100 = 684210.5

684210.5 = 916206.92

12.19.

3. another way to :

0.746 = (1712)n

n(0.746 = 13.19)

n = 13.19/0.746

n = 17

where the 15 years of bank amount as the

8 years of the amount is = $ 65,000

15 years of the balance is = $ 121600

they year of balance is = $ 8100 minimum

• . THEY the balance of to assumed that of the 15 years is the = $ 121600
• the sub contracting with they local manufacuring the firm end of the year payments $ 30,000 for next 15 years