SOLUTION: I put $250 per month into an account accruing 2.5% APR over 35 years. After 35 years, I stop putting money in and withdraw the same amount every month for 15 years. How much money

Algebra.Com
Question 1078961: I put $250 per month into an account accruing 2.5% APR over 35 years. After 35 years, I stop putting money in and withdraw the same amount every month for 15 years. How much money was deposited and how much was withdrawn?
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
if you invest 250 dollars at the end of each month for 35 years at 2.5% interest rate per year compounded monthly, you will have 167603 dollars at the end of that 35 year period.

in order to withdraw 250 dollars at the end of each month for 15 years at 2.5% interest rate per year compounded monthly,you will need to invest 37493 dollars at the beginning of that 15 year period.

if the beginning of that 15 year period coincides with the end of the 35 year period, you will have a net profit of 130110 dollars.

if you invest that 130110 dollars at the beginning of the 15 year period at 2.5% interest rate per year compounded monthly, you will have 189235 dollars at the end of that 15 year period.

you invested total payments of 420 * 250 = 105000 dollars.

you received total payments of 180 * 250 = 45000 dollars.

you had 0 dollars in your account at the start of the 35 year period.

you will have 167603 dollars in your account at the end of the 35 year period that coincides with the beginning of the 15 year period.

you will have 189235 dollars in your account at the end of the 15 year period.

35 years * 12 = 420 months.
15 years * 12 = 180 months.

your monthly investment period was 420 months.
your monthly withdrawal period was 180 months.





Answer by MathTherapy(10557)   (Show Source): You can put this solution on YOUR website!

I put $250 per month into an account accruing 2.5% APR over 35 years. After 35 years, I stop putting money in and withdraw the same amount every month for 15 years. How much money was deposited and how much was withdrawn? 
At the end of 35 years, you will have: 

With $167,603.14 in the account, you will be able to withdraw:  per month for 15 years. 

RELATED QUESTIONS


Deposits of ​$250 per month are put into an investment plan that pays an APR of... (answered by Boreal,ikleyn)

You put $159 per month in an investment plan that pays an APR of 5%. How much money will... (answered by Theo,math_tutor2020,ikleyn)

Eugene began to save for his retirement at age 20, and for 10 years he put $ 550 per... (answered by ikleyn)

Please help! I have worked on this challenge problem non stop for a while and I can not... (answered by Edwin McCravy)

Suppose you want to accumulate $50,000 for a college fund over the next 15 years.... (answered by ikleyn)

4.	You are planning to deposit $15,000 into a bank account at the end of each year for 5... (answered by Theo)

A. For all parts of this problem, money is invested in a retirement account with an APR... (answered by math_tutor2020)

A. For all parts of this problem, money is invested in a retirement account with an APR... (answered by math_tutor2020)

A. For all parts of this problem, money is invested in a retirement account with an APR... (answered by Theo)