Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

You currently have $20,000 in a bank account that pays you 5 percent interest annually. You plan to withdraw $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?

Sagot :

Answer: $22,515.58

Explanation:

Based on the information given, the amount that'll be in the account at the end of the 10 years will be:

Present Value, PV = $20,000

Interest rate = 5% = 0.05

PMT = 800

nper = 10 years

Therefore, the future value will be solved in Excel by using the formula:

= FV(rate,nper,pmt,pv,type)

= FV(0.05,10,800,20000,0)

= $22,515.58

Therefore, the value in the account at the end of 10 years is $22,515.58

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.