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| Math Central | Quandaries & Queries |
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Question from Jules, a student: R 20 000 is deposited in the bank,at the end of each year R 5 000 |
Hi Jules.
Use the formula for annuities.
where:
P is the principal (R 20 000)
R is the withdrawal (R 5 000)
i is the interest rate (0.13)
and n is the number of withdrawals. That's what you need to find.
You'll find it by re-arranging the equation and using logarithms, or you could estimate it by graphing an exponential function and finding the intersection with a line.
Write back if you need more help.
Cheers,
Stephen La Rocque.
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