Question

1.Derek currently has $11,020.00 in an account that pays 4.00%. He will withdraw $5,597.00 every other year beginning next year until he has taken 4.00 withdrawals. He will deposit $11020.0 every other year beginning two years from today until he has made 4.0 deposits. How much will be in the account 24.00 years from today?

2. Derek currently has $12,878.00 in an account that pays 6.00%. He will withdraw $5,256.00 every other year beginning next year until he has taken 7.00 withdrawals. He will deposit $12878.0 every other year beginning two years from today until he has made 7.0 deposits. How much will be in the account 24.00 years from today?

*PLEASE SHOW ON FINANCE CALCULATOR IF POSSIBLE*

Answer 1

(1):  The answer will be $72,231.33. Calculations are shown below:

Start of the year	Amount at the start of the year	Withdrawals	Deposits	Amount at the end of the year	Interest	Amount at the end with interest
1	11,020.00			11,020.00	440.80	11,460.80
2	11,460.80	-5,597.00		5,863.80	234.55	6,098.35
3	6,098.35		11,020.00	17,118.35	684.73	17,803.09
4	17,803.09	-5,597.00		12,206.09	488.24	12,694.33
5	12,694.33		11,020.00	23,714.33	948.57	24,662.90
6	24,662.90	-5,597.00		19,065.90	762.64	19,828.54
7	19,828.54		11,020.00	30,848.54	1,233.94	32,082.48
8	32,082.48	-5,597.00		26,485.48	1,059.42	27,544.90
9	27,544.90		11,020.00	38,564.90	1,542.60	40,107.50
10	40,107.50			40,107.50	1,604.30	41,711.80
11	41,711.80			41,711.80	1,668.47	43,380.27
12	43,380.27			43,380.27	1,735.21	45,115.48
13	45,115.48			45,115.48	1,804.62	46,920.10
14	46,920.10			46,920.10	1,876.80	48,796.90
15	48,796.90			48,796.90	1,951.88	50,748.78
16	50,748.78			50,748.78	2,029.95	52,778.73
17	52,778.73			52,778.73	2,111.15	54,889.88
18	54,889.88			54,889.88	2,195.60	57,085.47
19	57,085.47			57,085.47	2,283.42	59,368.89
20	59,368.89			59,368.89	2,374.76	61,743.65
21	61,743.65			61,743.65	2,469.75	64,213.39
22	64,213.39			64,213.39	2,568.54	66,781.93
23	66,781.93			66,781.93	2,671.28	69,453.21
24	69,453.21			69,453.21	2,778.13	72,231.33

(2): The answer will be $185,629.47. Calculations are shown below:

Start of the year	Amount at the start of the year	Withdrawals	Deposits	Amount at the end of the year	Interest	Amount at the end with interest
1	12,878.00			12,878.00	772.68	13,650.68
2	13,650.68	-5,256.00		8,394.68	503.68	8,898.36
3	8,898.36		12,878.00	21,776.36	1,306.58	23,082.94
4	23,082.94	-5,256.00		17,826.94	1,069.62	18,896.56
5	18,896.56		12,878.00	31,774.56	1,906.47	33,681.03
6	33,681.03	-5,256.00		28,425.03	1,705.50	30,130.53
7	30,130.53		12,878.00	43,008.53	2,580.51	45,589.05
8	45,589.05	-5,256.00		40,333.05	2,419.98	42,753.03
9	42,753.03		12,878.00	55,631.03	3,337.86	58,968.89
10	58,968.89	-5,256.00		53,712.89	3,222.77	56,935.66
11	56,935.66		12,878.00	69,813.66	4,188.82	74,002.48
12	74,002.48	-5,256.00		68,746.48	4,124.79	72,871.27
13	72,871.27		12,878.00	85,749.27	5,144.96	90,894.23
14	90,894.23	-5,256.00		85,638.23	5,138.29	90,776.52
15	90,776.52		12,878.00	103,654.52	6,219.27	109,873.80
16	109,873.80			109,873.80	6,592.43	116,466.22
17	116,466.22			116,466.22	6,987.97	123,454.20
18	123,454.20			123,454.20	7,407.25	130,861.45
19	130,861.45			130,861.45	7,851.69	138,713.13
20	138,713.13			138,713.13	8,322.79	147,035.92
21	147,035.92			147,035.92	8,822.16	155,858.08
22	155,858.08			155,858.08	9,351.48	165,209.56
23	165,209.56			165,209.56	9,912.57	175,122.14
24	175,122.14			175,122.14	10,507.33	185,629.47