Question

In: Economics

What is the amount of six equal annual deposits that can provide ten annual withdrawals, where...

What is the amount of six equal annual deposits that can provide ten annual withdrawals, where a first withdrawal of $22332 is made at the end of year seven and subsequent withdrawals increase at $2092 over the previous year, at an interest rate of 5% compounded annually?

Solutions

Expert Solution

We are given withdrawal as 22332, and increment in the withdrwal is 2092. Rate of interest is 5%. We are not given what amount was given as the annual deposit for 6 years. In tota we have 16 yeras.

If we solve using excel. We can use the goad seek funtion which is under the data tab. We need to make the last value of the withdrawal as zero by changing the withdrawal value. the working is provided in the down.


Related Solutions

What is the amount of 20 equal annual deposits that can provide 40 annual withdrawals when...
What is the amount of 20 equal annual deposits that can provide 40 annual withdrawals when a first withdrawal of $2,000 is made at the end of year 21 and subsequent withdrawals increase at the rate of 3 % per year over the previous year’s withdrawal. Determine the deposit amounts based on the interest rate of 7 % compounded annually.
At 4% effective annual interest, what is the accumulated amount at the end of ten years...
At 4% effective annual interest, what is the accumulated amount at the end of ten years (Future worth) if $50 is invested at end of each year for ten years?
A bank’s daily withdrawals and deposits over the last 12 months is indicated a. What net...
A bank’s daily withdrawals and deposits over the last 12 months is indicated a. What net deposit drain has a probability of 1.5%? b. What net deposit drain has a probability of 2%? c. What is probability of a one-day net deposit drain in excess of $30.00? deposits (000) withdrawals (000) 356 180 320 277 356 336 237 316 178 174 101 324 325 337 335 309 92 42 392 286 336 181 272 361 72 351 261 239 333...
A loan is repaid in ten equal annual installments with the first installment paid one year...
A loan is repaid in ten equal annual installments with the first installment paid one year after the loan is made. The effective annual interest rate is 4%. The total amount of principal repaid in the fifth, sixth, and seventh payments combined is $6,083. What is the total amount of interest paid in the second, third, and fourth payments combined? Less than $2,000 At least $2,000, but less than $2,020 At least $2,020, but less than $2,040 At least $2,040,...
(1)If the Fed wishes to increase the amount of deposits that banks hold, it can A  ...
(1)If the Fed wishes to increase the amount of deposits that banks hold, it can A   force banks by decree to do so. B   buy government bonds in an open market operation. C   sell domestic deposits to foreign investors. D   sell government bonds in an open market operation. (2)According to the quantity equation of money, in the long run, an increase in the growth of the money supply will A   increase inflation by the larger amount if velocity decreases. B  ...
Kim is planning on driving her business vehicle a roughly equal amount for ten years. However,...
Kim is planning on driving her business vehicle a roughly equal amount for ten years. However, she admits that there can be significant drops in kilometers driven during economic downturns (they are unpredictable). Discuss an appropriate depreciation method. Explain, in detail, why it would work better than other depreciation options.
An individual makes six annual deposits in a savings account starting one year from now that...
An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10% compounded quarterly. Ten years after the last deposit, a withdrawal of $10,000 per year for 10 years is withdrawn from the account. How much would be the six annual deposits? Solve step by step and draw cash flow diagram.
Two particles with equal de Broglie wavelength can have equal speed, equal kinetic energy, equal amount...
Two particles with equal de Broglie wavelength can have equal speed, equal kinetic energy, equal amount of movement and equal frequency?
Anne Simpson wants to have $1,400,000 in 50 years by making equal annual​ end-of-the-year deposits into...
Anne Simpson wants to have $1,400,000 in 50 years by making equal annual​ end-of-the-year deposits into a​ tax-deferred account paying 11.75 percent annually. What must​ Anne's annual deposit be? The amount of​ Anne's annual deposit must be $__ Round to the nearest cent
 Lisa Simpson wants to have $1,400,000 in 30 years by making equal annual​ end-of-the-year deposits into...
 Lisa Simpson wants to have $1,400,000 in 30 years by making equal annual​ end-of-the-year deposits into a​ tax-deferred account paying 11.75 percent annually. What must​ Lisa's annual deposit​ be?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT