Question 1126264
i'm not quite so sure you got the first part right.


my calculations indicate that the future value of the investment after 12 years is $26,265.91 and the amount you would receive each month for the following 5 years would be $530.07.


here are my inputs for the first part.


<img src = "http://theo.x10hosting.com/2018/101502.jpg" alt="$$$" >


here is my output for the first part.


<img src = "http://theo.x10hosting.com/2018/101503.jpg" alt="$$$" >


here are my inputs for the second part.


<img src = "http://theo.x10hosting.com/2018/101504.jpg" alt="$$$" >


here is my output for the second part.


<img src = "http://theo.x10hosting.com/2018/101505.jpg" alt="$$$" >


i also did the problem in excel to confirm the answer is correct.


here's the output from the excel analysis.


<img src = "http://theo.x10hosting.com/2018/101506.jpg" alt="$$$" >


<img src = "http://theo.x10hosting.com/2018/101507.jpg" alt="$$$" >


<img src = "http://theo.x10hosting.com/2018/101508.jpg" alt="$$$" >


the remaining balance is 0 at the end of the 5 year withdrawal period, as it should be.


your time periods are in months.


the number of month is equal to the number of years * 12.


the interest rate per month is equal to the interest rate per year divided by 12.


the calculator deals in percents, so 7.8% / 12 = .65%.


the excel spreadsheet deals in rates, so 7.8% / 100 = .078 / 12 = .0065.


the initial investments are made at the end of month 0.


the monthly payment are made at the end of month 1 to 144.


the monthly withdrawals are made at the end of month 1 to 60.


end of month 0 of the withdrawal period is equal to end of month 144 of the investment period.


in other words, the remaining balance at the end of month 144 is immediately
reinvested and becomes the remaining balance at the end of month 0 of the withdrawal period.