Interest 8%
Annual deposit 48,000.00
Annual retirement withdrawal 30,000.00
Year Account balance, beginning of year" "Deposit at beginning of year" "Interest earned during year" "Total in account, end year"
1 48,000.00
2 48,000.00
3 48,000.00
4 48,000.00
5 48,000.00
6 -30,000.00
7 -30,000.00
8 -30,000.00
9 -30,000.00
10 -30,000.00
11 -30,000.00
12 -30,000.00
13 -30,000.00
Note: This problem has 5 deposits and 8 annual withdrawals, all made at the beginning of the year. The beginning of year 13 is the last year of the retirement plan; if the annual deposit is correctly computed, the balance at the beginning of year 13 after the withdrawal should be zero.