Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now. 6) She plans to withdraw $5,000 each year for 10 years, starting one year after the last deposit and plans to leave the remaining amount in the fund. What would be balance in the fund 5 years after the last withdrawal? The fund pays 5% per year compounded annually.
Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now. 6) She plans to withdraw $5,000 each year for 10 years, starting one year after the last deposit and plans to leave the remaining amount in the fund. What would be balance in the fund 5 years after the last withdrawal? The fund pays 5% per year compounded annually.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 9RE
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Transcribed Image Text:Jane decides to make 5 end-of-year deposits of $10,000 into a fund starting one year from now.
6)
She plans to withdraw $5,000 each year for 10 years, starting one year after the last deposit and plans to leave
the remaining amount in the fund. What would be balance in the fund 5 years after the last withdrawal? The
fund pays 5% per year compounded annually.
Expert Solution
Step 1
Calculate the amount at the end of 5 years as below:
Resultant Table:
Hence, amount at the end of last deposit will be $55,256.31
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