A person deposits 2000$ to an account each year for five years starting at end of year one. At end of 5th year half of the balance is withdrawn. After withdrawal, 4000$ is deposited yearly for 5 more years starting at 6th year. With no additional payments in years 11 to 15, person with draws the whole balance in end of year 15. a)What is the total amount withdrawn at end of 5 years if interest is 7% per year?
A person deposits 2000$ to an account each year for five years starting at end of year one. At end of 5th year half of the balance is withdrawn. After withdrawal, 4000$ is deposited yearly for 5 more years starting at 6th year. With no additional payments in years 11 to 15, person with draws the whole balance in end of year 15. a)What is the total amount withdrawn at end of 5 years if interest is 7% per year?
Chapter1: Making Economics Decisions
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Transcribed Image Text:**Scenario: Investment and Withdrawal Plan**
A person deposits $2000 to an account each year for five years starting at the end of year one. At the end of the 5th year, half of the balance is withdrawn. Following the withdrawal, $4000 is deposited yearly for the next five years, starting at the 6th year. No additional payments are made in years 11 to 15, and the person withdraws the entire balance at the end of year 15.
**Question:**
a) What is the total amount withdrawn at the end of 5 years if the interest is 7% per year?
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