Question

Suppose an initial deposit of D dollars into a savings account yields a fixed percentage r per year.

The following withdrawal scheme is used:

After the first year the account holder withdraws W dollars out of the account. Following the second year, the account holder withdraws V dollars out of the account. The account holder continues to withdraw W or V dollars each year in an alternating fashion. (Refer to your notes for the partial sum of a geometric series and compare this exercise with Worksheet 3.)

Find an equation that shows the value of the account after N years. (Assume N is odd. This will affect indexing. This assumption will simplify your answer.) ___________

Here, record the part of your expression that involves the term D. ___________

Here, record the part of your expression that involves the term W. ___________

Here, record the part of your expression that involves the term V.

Answer 1

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