Business Finance Homework
At the end of this year you deposit $3000 into a saving account. Each year you plan to increase the amount by 2%. If you can earn 5% in your savings account, how much money will you have in 20 years?
116,735
43,996
99,197
66,131.91
None of the above.
Suppose you have saved $1,000,000. You plan to withdraw money at the end of each year for the next 25 years (until you die). The bank pays 7% interest, and you expect to increase your withdrawal amount each year by the 3% inflation rate. How much can you withdraw the first year?
65,112.90
15,355.58
11,998.84
83,341.37
None of the above.