In: Finance
1. Derek wants to withdraw $13,105.00 from his account 6.00 years from today and $12,140.00 from his account 14.00 years from today. He currently has $3,215.00 in the account. How much must he deposit each year for the next 14.0 years? Assume a 6.63% interest rate. His account must equal zero by year 14.0 but may be negative prior to that.
Question 1 | ||||||||
year | OPENING | CASH FLOW | AMT | COMPUND RATE | CLOSING BAL | |||
1 | 3215 | 869.48 | 4084.48 | 1.10663 | 4,520.01 | |||
2 | 4520.008 | 869.48 | 5389.488 | 1.10663 | 5,964.17 | |||
3 | 5964.169 | 869.48 | 6833.649 | 1.10663 | 7,562.32 | |||
4 | 7562.321 | 869.48 | 8431.801 | 1.10663 | 9,330.88 | |||
5 | 9330.884 | 869.48 | 10200.36 | 1.10663 | 11,288.03 | |||
6 | 11288.03 | 869.48 | 12157.51 | 1.10663 | 13,453.86 | |||
6 | 13453.86 | -13105 | 348.8642 | 1.10663 | 386.06 | |||
7 | 386.0636 | 869.48 | 1255.544 | 1.10663 | 1,389.42 | |||
8 | 1389.422 | 869.48 | 2258.902 | 1.10663 | 2,499.77 | |||
9 | 2499.769 | 869.48 | 3369.249 | 1.10663 | 3,728.51 | |||
10 | 3728.512 | 869.48 | 4597.992 | 1.10663 | 5,088.28 | |||
11 | 5088.276 | 869.48 | 5957.756 | 1.10663 | 6,593.03 | |||
12 | 6593.031 | 869.48 | 7462.511 | 1.10663 | 8,258.24 | |||
13 | 8258.239 | 869.48 | 9127.719 | 1.10663 | 10,101.01 | |||
14 | 10101.01 | 869.48 | 10970.49 | 1.10663 | 12,140.27 | |||
14 | 12140.27 | -12140 | 0.270754 | |||||
Question 2 | ||||||||
year | OPENING | CASH inFLOW | CASH outFLOW | AMT | COMPUND RATE | CLOSING BAL | ||
1 | 14133 | 14133 | 1.05 | 14,839.65 | ||||
2 | 14839.65 | -5997 | 8842.65 | 1.05 | 9,284.78 | |||
3 | 9284.783 | 14133 | -5997 | 17420.78 | 1.05 | 18,291.82 | ||
4 | 18291.82 | 14133 | -5997 | 26427.82 | 1.05 | 27,749.21 | ||
5 | 27749.21 | 14133 | -5997 | 35885.21 | 1.05 | 37,679.47 | ||
6 | 37679.47 | 14133 | -5997 | 45815.47 | 1.05 | 48,106.25 | ||
7 | 48106.25 | 14133 | -5997 | 56242.25 | 1.05 | 59,054.36 | ||
8 | 59054.36 | 14133 | 73187.36 | 1.05 | 76,846.73 | |||
9 | 76846.73 | 76846.73 | 1.05 | 80,689.06 | ||||
10 | 80689.06 | 80689.06 | 1.05 | 84,723.52 | ||||
11 | 84723.52 | 84723.52 | 1.05 | 88,959.69 | ||||
12 | 88959.69 | 88959.69 | 1.05 | 93,407.68 | ||||
13 | 93407.68 | 93407.68 | 1.05 | 98,078.06 | ||||
14 | 98078.06 | 98078.06 | 1.05 | 1,02,981.96 | ||||
15 | 102982 | 102982 | 1.05 | 1,08,131.06 | ||||
16 | 108131.1 | 108131.1 | 1.05 | 1,13,537.62 | ||||
17 | 113537.6 | 113537.6 | 1.05 | 1,19,214.50 | ||||
18 | 119214.5 | 119214.5 | 1.05 | 1,25,175.22 | ||||
19 | 125175.2 | 125175.2 | 1.05 | 1,31,433.98 | ||||
20 | 131434 | 131434 | 1.05 | 1,38,005.68 | ||||
21 | 138005.7 | 138005.7 | 1.05 | 1,44,905.97 | ||||
22 | 144906 | 144906 | 1.05 | 1,52,151.26 | ||||
23 | 152151.3 | 152151.3 | 1.05 | 1,59,758.83 | ||||
24 | 159758.8 | 159758.8 | 1.05 | 1,67,746.77 | ||||
25 | 167746.8 | 167746.8 | 1.05 | 1,76,134.11 | ||||
26 | 176134.1 | 176134.1 | 1.05 | 1,84,940.81 | ||||