You Are Going to Withdraw $1,000 at the End of Each

question 205

Multiple Choice

You are going to withdraw $1,000 at the end of each year for the next three years from an account that pays interest at a rate of 8% compounded annually. The account balance will reduce to zero
When the last withdrawal is made. How much money will be in the account immediately after the
Second withdrawal is made?

• A) $925.93
• B) $977.10
• C) $982.29
• D) $1,000.00
• E) $2,000.00

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