Question

# An annual deposits of A1=\$1,900 in a saving account is made for 6 years starting years...

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%

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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