Question
Martin plans to save some money by depositing into an account in the following manner. He will deposit $2000 at the end of each year
Martin plans to save some money by depositing into an account in the following manner. He will deposit $2000 at the end of each year for the first ten years. Then he will increase his annual deposit to $4000 for the next ten years. Thereafter, he plans to decrease his annual deposit by $200 each year, that is, he will deposit $3800 at the end of the twenty first year, $3600 at the end of the twenty second year, and so on. This account earns interest at a nominal annual rate of 5% compounded semiannually. After he made his deposit at the end of thirty five years, he decided to withdraw everything from this account. How much will Martin get?
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