SOLUTION: Please help me solve this question : $700 is save in account now. This money is to be withdrawal $300 at the end of two years and $X at the end of eight years. Find the amount o

Question 1142482: Please help me solve this question :
$700 is save in account now. This money is to be withdrawal $300 at the end of two years and $X at the end of eight years. Find the amount of second withdrawal assuming that money is worth 5.5% per annum using ten years the focal date.
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
you do not say how much of the money in the account is withdrawn after 8 years.
is it the rest of the money or is it something less?

assuming it is the rest of the money, you would do the following.

you start with 700.

at the end of 2 years, the money in the account is 700 * (1 + .055) ^ 2 = 779.1175.

you remove 300 and you are left with 479.1175.

6 years later (at the end of 8 years), the money in the account is 479.1175 * (1 + .055) ^ 6 = 660.6277185.

if you remove all of it, then that's the amount you remove.

in the last 2 years, you will have nothing in the account.

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