Answer to Question #138151 in Finance for CH Tan

Question #138151
What is the amount of 10 equal annual deposits that can provide five annual withdrawals
when the first withdrawals of $5,000 is made at the end of Year 11 and each subsequent
withdrawal increases by $400 if the interest is 9 percent compounded quarterly?
1
Expert's answer
2020-10-23T07:21:32-0400

1.PV of all withdrawals:

11 5000 1878,3827

12 5400 1855,8999

13 5800 1823,625

14 6200 1783,3885

15 6600 1736,7805

9078,0765



And so on, add 400 and find PV

sum is 9078.08

2.

we will calculate the divide for all deposit periods:

cells F to T





  1. find 10 equal annual deposits

x=1311.71


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