Question

Mr. Gonzales has made beginning-of-year deposits into an investment account for the past 21 years. Each deposit was $5500, and the account earned interest at a rate of 4.5% APR, compounded quarterly, each year. Having made his last deposit one year ago, he now plans to transfer all of the accumulated funds today into a money-market account that earns an APR of 1.50% compounded quarterly. If he plans to withdraw $4000 from the account at the end of each quarter for the next 9 years (36 quarters), what will be the account balance total exactly nine years from now, immediately after he makes the last quarterly withdrawal?

Answer #1

The total value of the beginning-of-year deposits today is to be found out. Using a excel function FV

Value of the deposits today = $770,888.10

Now, we have to calculate future value after 9 years with the amount invested at 1.5% per annum and quarterly $4000 withdrawal

Hence, the account balance after 9 years = $728222.68

A man deposits $17,000 at the beginning of each year for 10
years in an account paying 7% compounded annually. He then puts
the total amount on deposit in another account paying 9%
compounded semiannually for another 9 years. Find the final amount
on deposit after the entire 19-year period.
He will have a final amount of
$
after the entire
1919-year
period.

You deposit $2,500 per year at the beginning of each of the next
30 years into an account that pays 6% compounded annually. How much
could you withdraw at the end of each of the 20 years following
your last deposit if all withdrawals are the same dollar amount?
(The 30th and last deposit is made at the beginning of the 20-year
period. The first withdrawal is made at the begining of the first
year in the 20-year period.)

A man deposits $16,000 at the beginning of each year for 18
years in an account paying 6% compounded annually. He then puts
the total amount on deposit in another account paying 9%
compounded semiannually for another 13 years. Find the final amount
on deposit after the entire 31-year period.
He will have a final amount of $____? after the entire 31-year
period
(Simplify your answer. Round to the nearest cent as
needed.)

1. For the next 6 years, you pan to make equal quarterly
deposits of $600.00 into an account paying 8% compounded quarterly.
How much will be the total you have at the end of the time?
2. How much money will you have to deposit now if you wish to
have $5,000 at the end of 8 years. Interest is to be at the rate of
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Beginning one year from now, six annual deposits of $2,000
each
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What will be the balance in the account after the sixth
deposit?
No.2
What amount must be deposited at 10% in an account on January 1,
2019 if it is
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The last withdrawal will occur on January 1, 2023.

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A company deposits $1000 in a bank at the beginning of each year
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