Question

Derek currently has $12,527.00 in an account that pays 4.00%. He will withdraw $5,639.00 every other year beginning next year until he has taken 5.00 withdrawals. He will deposit $12527.0 every other year beginning two years from today until he has made 5.0 deposits. How much will be in the account 27.00 years from today?

*PLEASE SHOW ON FINANCE CALCULATOR IF POSSIBLE*

Answer 1

A	B	C	D	E	F	G	H	I	J	K	L	M	N	O	P	Q
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3		Future value of the deposits and withdrawal will be the amount after 27 years.
4		The cash flows of the company can be represeted as follows:
5
6		Interest rate	4%
7		Year	27
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9		Year	0	1	2	3	4	5	6	7	8	9	10
10		Cash Flow	$12,527.00	($5,639.00)	$12,527.00	($5,639.00)	$12,527.00	($5,639.00)	$12,527.00	($5,639.00)	$12,527.00	($5,639.00)	$12,527.00
11		Future Value factor for year 27, (F/P,i,n)	2.88	2.77	2.67	2.56	2.46	2.37	2.28	2.19	2.11	2.03	1.95	=(1+$D$6)^($D$7-N9)
12		Future Value	$36,119.96	($15,633.96)	$33,394.93	($14,454.47)	$30,875.49	($13,363.97)	$28,546.13	($12,355.74)	$26,392.50	($11,423.58)	$24,401.35	=N10*N11
13		Total Future Value	$112,498.63	=SUM(D12:N12)
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15		Hence amount in the account after 27 Years	$112,498.63
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