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 ->  Customizable Word Problem Solvers  -> Finance -> 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       Log On

Ad: Over 600 Algebra Word Problems at edhelper.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 How much money was deposited and how much was withdrawn?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) About Me  (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) About Me  (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 How much money was deposited and how much was withdrawn?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: highlight_green%28%22%24167%2C603.14%22%29

With $167,603.14 in the account, you will be able to withdraw: highlight_green%28%22%24768.39%22%29 per month for 15 years.