Ivanthedumbfck
New member
- Joined
- Oct 7, 2014
- Messages
- 23
Terry saves $50 at the beginning of each month for 16 years. Beginning 1 month after his last deposit, he intends to withdraw $375 per month. If interest is 6% compounded monthly, for how long can Terry make withdrawals?
I don't know if i did this right. This is what I did:
I=0.06/12=0.005
n=16x12=192
FV = PMT[(1+i)^n-1]/i x (1+i)
25[(1+0.005)^192-1]/0.005 x (1+0.005)
FV = $16134.83967
PV =PMT[1-(1+i)^-n]/i x (1+i)
$16134.83967 =375[1-(1+0.005)^-n]/0.005 x (1+0.005)
n= 43 months
The answer is 49 months, but sometimes the answer is wrong lol.
I don't know if i did this right. This is what I did:
I=0.06/12=0.005
n=16x12=192
FV = PMT[(1+i)^n-1]/i x (1+i)
25[(1+0.005)^192-1]/0.005 x (1+0.005)
FV = $16134.83967
PV =PMT[1-(1+i)^-n]/i x (1+i)
$16134.83967 =375[1-(1+0.005)^-n]/0.005 x (1+0.005)
n= 43 months
The answer is 49 months, but sometimes the answer is wrong lol.