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What is the amount of five equal annual deposits that can provide five annual withdrawls, where...

What is the amount of five equal annual deposits that can provide five annual withdrawls, where a first withdrawl of $1000 is made at the end of year 6 and subsequent withdrawls increase at a rate of 10% year over the previous year’s if the interest rate is 10% compounded annually? Step by step

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. Five annual withdrawals. First withdrawal at the end of year 6 is $1,000 . Interest rate compounded annually is 10 %. . AnnSubstitute the respective values in Equation (1) to obtain the amount of equal annual deposit for the first 5 years. (10-11,000 5 DI 0.10 0.6105 0.10 -J = 1,000(4.5454) A, (6.105)-4,545.4 4,545.4 6.105 A-744.537 Since the amount of equal annual deposit for the first 5 years is $744.537, option a is correct

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