Question

Derek currently has $13,976.00 in an account that pays 5.00%. He will withdraw $5,724.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $13976.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 24.00 years from today?

Answer 1

Year	Opening balance	Deposit	Withdrawal	Net cashflow	FV factor (1+5%)^(24-time)	Net cashflow * FV factor
0	$13,976.00			$13,976.00	3.2251	$ 45,074.00
1		$(5,724.00)		$ (5,724.00)	3.071524	$ (17,581.40)
2			$13,976.00	$13,976.00	2.925261	$ 40,883.44
3		$(5,724.00)		$ (5,724.00)	2.785963	$ (15,946.85)
4			$13,976.00	$13,976.00	2.653298	$ 37,082.49
5		$(5,724.00)		$ (5,724.00)	2.52695	$ (14,464.26)
6			$13,976.00	$13,976.00	2.406619	$ 33,634.91
7		$(5,724.00)		$ (5,724.00)	2.292018	$ (13,119.51)
8			$13,976.00	$13,976.00	2.182875	$ 30,507.86
9		$(5,724.00)		$ (5,724.00)	2.078928	$ (11,899.78)
10			$13,976.00	$13,976.00	1.979932	$ 27,671.52
11		$(5,724.00)		$ (5,724.00)	1.885649	$ (10,793.46)
12			$13,976.00	$13,976.00	1.795856	$ 25,098.89
					Total	$156,147.84
	So total amount after 24 years in the account will be $ 156,147.84