document.write( "Question 1205569: You can purchase an investment that pays $75,000 at the beginning of each year for twenty years. Similar investments earn an 8% interest rate. How much will the payments be worth to you at the end of fifteen years? \n" ); document.write( "

Algebra.Com's Answer #842465 by ikleyn(52847) $\"\"$ $\"About$

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\n" ); document.write( "You can purchase an investment that pays $75,000 at the beginning of each year for twenty years.
\n" ); document.write( "Similar investments earn an 8% interest rate. How much will the payments be worth to you
\n" ); document.write( "at the end of fifteen years?
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document.write( "Similar account at the end of fifteen years is able to provide payments of $75,000 \r\n" );
document.write( "at the beginning of each year for 5 (five) years.\r\n" );
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document.write( "So, the question is: find the amount, which, when invested at 8% annual interest rate,\r\n" );
document.write( "will provide payment (withdrawing) $75,000 at the beginning of each year for five years.\r\n" );
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document.write( "    |    It is a standard question/problem about   |\r\n" );
document.write( "    |      a starting amount of a sinking fund.    |\r\n" );
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document.write( "The general formula  to calculate the starting amount at the account is\r\n" );
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document.write( "    X = .\r\n" );
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document.write( "In this formula, W is  the regular annual withdrawal, W = $75000;  the factual annual compounding rate \r\n" );
document.write( "is  r = 0.08,  p = 1 + 0.08 = 1.08, and the number of payment periods  is n = 5 years. So\r\n" );
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document.write( "          X =  = 323409.52 dollars.     \r\n" );
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document.write( "It is the  ANSWER  to the problem's question.\r\n" );
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\n" ); document.write( "\n" ); document.write( "See my lessons in this site associated with annuity saving plans and retirement plans \r
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\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Annuity Due saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Solved problems on Ordinary Annuity saving plans \r
\n" ); document.write( "\n" ); document.write( "    - Withdrawing a certain amount of money periodically from a compounded saving account (*)\r
\n" ); document.write( "\n" ); document.write( "    - Miscellaneous problems on retirement plans \r
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\n" ); document.write( "\n" ); document.write( "and especially lesson marked (*) in the list as the most relevant to the given problem.\r
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