Question

A person invested 2,000,000 SR in an account that pays 10% compounded annually. The first withdraw happens at the end of year 3. The payments increase at 5% every year until the end of 6th year. Thereafter, the payments decrease by 5,000 SR every year. The planning horizon is 15 years. Calculate the value of the first withdraw such that this investment is attractive (Use PW analysis)

Answer #1

A person invested 2,000,000 SR in an account that pays
10% compounded annually.
The first withdraw happens at the end of year 3. The payments
increase at
5% every year until the end of 6th year. Thereafter, the payments
decrease
by 5,000 SR every year. The planning horizon is 15 years. Calculate
the value
of the first withdraw such that this investment is attractive (Use
PW
analysis)

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* Engineering Economic Analysis
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On (c), provide the solutions using the Compound interest table
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eBook
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higher.
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Answer format: Currency: Round to: 2
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