4. Use the provided chart to solve this problem. 4. An individual makes five annual deposits of $2,000 in a savings account that paysinterest as at a rate of 4% per year. One year after making the last deposit, the interestrate changes to 6% per year. Five years after the last deposit, the accumulated moneyis withdrawn from the account. How much is withdrawn? factor namesingle paymentcompound amountsingle paymentpresent worthuniform seriessinking fundcapital recoveryuniform seriescompound amountuniform seriespresent worthuniform gradientpresent worthuniform gradientfuture worthuniform gradientuniform seriesconvertsP to FF to PF to AP to AA to FA to PG to PG to FG to Asymbol(F/P, i%, n)(P/F, 1%, n)(A/F, i%, n)(A/P, i%, n)(F/A, 1%, n)(P/A, i%, n)(P/G,i%, n)(F/G,1%, n)(A/G, i%, n)formula(1 + i)"(1 + i)-¹i(1 + i)" - 1i(1+i)"(1+i)n-1(1+i)n-1i(1+i)n-1i(1+i)n1-i(1+i)n-11² (1+i)nni(1+i)n(1+i)n-1nin(1+i)n-1

Accumulated money refers to the total amount of money that has been earned or saved over a period of…

4. An individual makes five annual deposits of $2,000 in a savings account that pays interest as at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit, the accumulated money is withdrawn from the account. How much is withdrawn?

4. An individual makes five annual deposits of $2,000 in a savings account that pays interest as at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit, the accumulated money is withdrawn from the account. How much is withdrawn?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 1R

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