Question

Derek wants to withdraw $12,560.00 from his account 5.00 years from today and $12,875.00 from his account 15.00 years from today. He currently has $2,845.00 in the account. How much must he deposit each year for the next 15.0 years? Assume a 5.02% interest rate. His account must equal zero by year 15.0 but may be negative prior to that. Submit Answer format: Currency: Round to: 2 decimal places. Derek currently has $14,502.00 in an account that pays 5.00%. He will withdraw $5,695.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $14502.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 24.00 years from today? Submit Answer format: Currency: Round to: 2 decimal places. #6 Derek can deposit $297.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,464.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

Answer 1

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Deposit in each year (P) PVA: ([1-(1=(1+r)^n)]=r) Here, A Interest rate per annum B Number of years lumber of compoundings per per annum 5.02% 15 1 5.02% A:C Interest rate per period (r) BxC Number of periods (n) Present value (PVA) $ 13,162 =12560/(1+5.02%)^5+12875/(1+5.02%)^15-2845 Deposit in each year (P) $1,269.79 13162.15:((1-(1:(1+5.02%)^15)):5.02%)

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