Question

You invest 10000$ in a savings account today at j1 = 5%. you withdraw 500$ at the end of year 1, 550$ at the end of year 2, 600$ at the end of year 3, and so on (increasing the size of the annual withdrawal by 50$ each year with respect to the previous year). What is the account balance at the end of year 10?

Answer 1

rate positively..

Computation of balance at the end of 10th year
	i	ii=i*5%	iii	iv=i+ii-iii
year	Beginning balance	Interest earned	Amount with drawn	ending balance
0				10,000.00
1	10,000.00	500.00	500.00	10,000.00
2	10,000.00	500.00	550.00	9,950.00
3	9,950.00	497.50	600.00	9,847.50
4	9,847.50	492.38	650.00	9,689.88
5	9,689.88	484.49	700.00	9,474.37
6	9,474.37	473.72	750.00	9,198.09
7	9,198.09	459.90	800.00	8,857.99
8	8,857.99	442.90	850.00	8,450.89
9	8,450.89	422.54	900.00	7,973.44
10	7,973.44	398.67	950.00	7,422.11
Ans =	7,422.11