Question

Derek currently has $14,522.00 in an account that pays 4.00%. He will withdraw $5,748.00 every other year beginning next year until he has taken 8.00 withdrawals. He will deposit $14522.0 every other year beginning two years from today until he has made 8.0 deposits. How much will be in the account 30.00 years from today?

PLEASE show how to do on financial calculator.

Answer 1

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

CF0 = 14522

C01 = -5748

F01 = 1

C02 = 14522

F02 = 1

C03 = -5748

F03 = 1

C04 = 14522

F04 = 1

C05 = -5748

F05 = 1

C06 = 14522

F06 = 1

C07 = -5748

F07 = 1

C08 = 14522

F08 = 1

C09 = -5748

F09 = 1

C10 = 14522

F10 = 1

C11 = -5748

F11 = 1

C12 = 14522

F12 = 1

C13 = -5748

F13 = 1

C14 = 14522

F14 = 1

C15 = -5748

F15 = 1

C16 = 14522

F16 = 1

Then press NPV, it will ask for I, put 4 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 $63325.01

Now to calculate FV

Put -63325.01 in PV

N = 30

I/Y = 4

PMT = 0

compute for FV

You will get the FV = $205388.19

He will have a total of $205388.19 in his account after 30 years from today.