Question

An annual deposits of A₁=$1,900 in a saving account is made for 6 years starting years 2. In year 8, a one- time withdrawal of $3,400 is made. In year 12, a one-time deposit of $2,200 is made. Then another series of annual deposits of A2 for 7 years started in year 14, increasing by $160 every year. If a one-time withdrawal of $1,100 was made in year 21 and the present worth of the whole amounts of deposits and withdrawals is $-17,300. What is the value of A₂? Assume an interest rate of 8%

Answer 1

Solution:-

Given that

in a saving account made for 6 years starting years 2.

In year 8, withdrawal $ 3400 is made

In year 12, deposit $ 2200 is made.

Then another series of annual deposits of A2 for 7 years started in year 14, increasing by $160 every year.

If a one-time withdrawal of $1,100 was made in year 21 and the present worth of the whole amounts of deposits and withdrawals is $-17,300.

Assume an interest rate of 8%

  

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