Question

Use a loop in Matlab to determine how long it will take to accumulate at least $2,000,000 in a bank account if you deposit $10,000 initially and $10,000 at the end of each year; the account pays 8% annual interest distributed at the end of each year. Tabulate the amount in your bank account at the end of each year in an easy to read manner. Round it off to the nearest whole dollar amount in the balance. If you want to accumulate $3,000,000 in 35 years, how much do you need to contribute at the end of each year assuming everything else is the same as above.

describe your approach, present and explain yours results.

Answer 1

Matlab Code:

clear all
clc
%initializing the year
k(1) = 0;
%Initial amount
Amount(1) = 10000;
i=1;
%giving final value
final=2000000;
while Amount(i) < final
k(i+1) = k(i) + 1;
%callculating amount at each successive year
Amount(i+1) = 1.08*Amount(i) + 10000;
%a(i)=amount
i=i+1;
end
%Generating the table
T=table(k',round(Amount'), 'VariableNames',{'year','Amount'})
%Displaying the final answer
fprintf(' After %d years the given amount %d will be accumulate',k(i),final)

Output:

T =

year Amount
____ __________

0 10000
1 20800
2 32464
3 45061
4 58666
5 73359
6 89228
7 1.0637e+05
8 1.2488e+05
9 1.4487e+05
10 1.6646e+05
11 1.8977e+05
12 2.1495e+05
13 2.4215e+05
14 2.7152e+05
15 3.0324e+05
16 3.375e+05
17 3.745e+05
18 4.1446e+05
19 4.5762e+05
20 5.0423e+05
21 5.5457e+05
22 6.0893e+05
23 6.6765e+05
24 7.3106e+05
25 7.9954e+05
26 8.7351e+05
27 9.5339e+05
28 1.0397e+06
29 1.1328e+06
30 1.2335e+06
31 1.3421e+06
32 1.4595e+06
33 1.5863e+06
34 1.7232e+06
35 1.871e+06
36 2.0307e+06

After 36 years the given amount 2000000 will be accumulate>>