You want to be able to withdraw $ 800 $ 800 from a savings account at the end of year 1, $ 900 $ 900 at the end of year 2, $ 1 $ 1 ,000 at the end of year 3, and so on over a total of 5 years How much money must be on deposit right now, at the end of year 0, to just deplete the account after the 5 ...

To solve this problem we can use the concept of present value which ...

You want to be able to withdraw $ 800 $ 800 from a savings account at the

Question:

You want to be able to withdraw $$ 800$ from a savings account at the end of year 1, $$ 900$ at the end of year 2, $$ 1$ ,000 at the end of year 3, and so on over a total of 5 years. How much money must be on deposit right now, at the end of year 0, to just deplete the account after the 5 withdrawals if interest is 5 percent compounded annually?