2. You deposit $100,000 in an account that earns a 10% annual rate of return. You have decided that at the en?

You deposit $100,000 in an account that earns a 10% annual rate of return. You have decided that at the end of each year you will withdraw the interest that is credited to your account. If you plan on closing the account at the end of the tenth year, how much are you able to withdraw at that point in time?|||Well...the way you ask it: 100000


If you ask for the total amount withdrawn in these 10 year, then maybe: (100000*1.1-100000)*10+100000 = 200000.


Why would you withdraw the rate at the end of each year and not leave it for a while...if you leave till the very end...then you will have: 100000*1.1^10 = 259 374.246....that is a return of 159% roughly.