Question

Derek currently has \$10,906.00 in an account that pays 6.00%. He will withdraw \$5,571.00 every other...

Derek currently has \$10,906.00 in an account that pays 6.00%. He will withdraw \$5,571.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit \$10906.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 22.00 years from today? WITH CALCULATOR

Solving using Financial calculator, Lets us first feed all the value in financial calculator

CF0 = 10906

C01 = -5571

F01 = 1

C02 = 10906

F02 = 1

C03 = -5571

F03 = 1

C04 = 10906

F04 = 1

C05 = -5571

F05 = 1

C06 = 10906

F06 = 1

C07 = -5571

F07 = 1

C08 = 10906

F08 = 1

C09 = -5571

F09 = 1

C10 = 10906

F10 = 1

C11 = -5571

F11 = 1

C12 = 10906

F12 = 1

Then press NPV, it will ask for I, put 6 and enter. press down arrow, and you will see NPV = 0.00. To get the present value of the cash flows, press CPT. We find that the present value is \$31258.15

Now to calculate FV

Put -31258.15 in PV

N = 22

I/Y = 6

PMT = 0

compute for FV

You will get the FV = \$112639.90

He will have a total of \$112639.90 in his account after 22 years from today.