What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $21618 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year’s, if the interest rate is 10%, compounded annually? Interest rate should be rounded of by 5 decimal places and final answer to 2 decimal places   Note: Do not use excel

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Solve the following and draw the cash flow diagram

What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $21618 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year’s, if the interest rate is 10%, compounded annually?

Interest rate should be rounded of by 5 decimal places and final answer to 2 decimal places

 

Note: Do not use excel

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