George deposited $10,000 in an account with the rate of return of 4%

George deposited $10,000 in an account with the rate of return of 4%. He withdrew $500 from the account in year 2 and increased the amount of his withdrawal by the same amount of $500 every year after that. What is the year number in which he will make the last withdrawal?

Please solve using formulas and not Excel.

Expert Solution

Because when you calculate the cumulative value, present value exceeds the initial value at year 8 which is why the last withdrawal will be made in year 8 only

Rahul Sunny answered 2 years ago

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