Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

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

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.