Question

Uriah Heep celebrated his 18th birthday by opening a savings account at the Thames River Bank and depositing 54,800. He continued to deposit the same amount on every subsequent birthday will be was 26 years old. Aher depositing 54,600 on his 26th birthday Uriah decided to abandon his savings plan. He never saved again, but he left the accumulated savings in the bank account. The bank paid interest of 546 When Uriah tumed 65, he withdrew the money from the bank. What was the amount of his withdrawal? What was the amount of Ural's withdrawal when he tumed 65? Round to the cont)

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

$4,800.00 ay Annual deposit (on birthday) No. of deposit from 18th to 26th birthday Annual interest rate Value of Account on 26th birthday 5% $52,927.51 Years from 26th birthday to 65th birthday Value of Account on 65th birthday 39 $354,865.78

Cell reference -

Annual deposit (on birthday) No. of deposit from 18th to 26th birthday Annual interest rate Value of Account on 26th birthday 4800 1 =26-17 0.05 =FV(C4,C3,-C2,,0) Years from 26th birthday to 65th birthday Value of Account on 65th birthday =65-26 =FV(C4,C7,,-C5,0) 9 19

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.