Question
A family wish to make 25 regular annual withdrawals from their bank account for the next 25 years. All the withdrawals will be of the
A family wish to make 25 regular annual withdrawals from their bank account for the next 25 years. All the withdrawals will be of the amount of $3,673. They plan to make the first withdrawal a year from now, the second one two year from now, the third one three years from now, and so on. In addition, they also wish to have $2,801 remaining balance in your account right after their 25th withdrawal. If the bank pays 6% annual compounding interest, how much money do they need to have in the account right now so that they can make all the 25 withdrawals and have $2,801 leftover as expected. Round your answer to the nearest $1, i.e., round to a whole number.
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