You deposit $14523 at the end of each year, increasing the amount by $4708 each

Question

You deposit $14523 at the end of each year, increasing the amount by $4708 each subsequent year, into an account paying 3% compounded annually for 15 years. You then stop making deposits and leave the money in the account to accrue interest. How much could you withdraw each year (assuming equal withdrawal amounts) for 11 years it you make your first withdrawal at the end of year 30? Enter your answer follows: 12345. Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point.

Explanation / Answer

Term of investment (years) FV factor FV 1 14523 4708 30 2.4273 35251.68 2 19231 4708 29 2.3566 45319.77 3 23939 4708 28 2.2879 54770.04 4 28647 4708 27 2.2213 63633.58 5 33355 4708 26 2.1566 71933.39 6 38063 4708 25 2.0938 79696.31 7 42771 4708 24 2.0328 86944.89 8 47479 4708 23 1.9736 93704.55 9 52187 4708 22 1.9161 99995.51 10 56895 4708 21 1.8603 105841.8 11 61603 4708 20 1.8981 116928.7 12 66311 4708 19 1.7535 116276.3 13 71019 4708 18 1.7024 120902.7 14 75727 4708 17 1.6528 125161.6 15 80435 16 1.6047 129074 Total Future value 1345435 Amount of each installment to be withraw after at the end of 30th year 122312.3

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