Betty and Bob invest $1,000 at the end of each month for 3 years at 12%...
Betty and Bob invest $1,000 at the end of each month for 3 years at 12% per annum compounded monthly. If they withdraw $5000 at the end of 18 months, then find the account balance after 3 years. Your final answer should be correct to 3 places after the decimal point.
Homework Answers
=Future Value after 3 years
=(Present Value of savings-Present Value of
withdrawals)*(1+r)^t
=(1000/(12%/12)*(1-1/(1+12%/12)^(12*3))-5000/(1+12%/12)^18)*(1+12%/12)^(12*3)
=37096.14098
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Betty and Bob invest $1,000 at the end of each month for 3 years
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