Nancy deposits $22,000 in an investment account earning 4.2% interest annually. In addition, she plans on withdrawing $4,000, $6,000 and $8,000 over a three-year period. Using the financial functions on the calculator, determine how much Nancy will have remaining at the end of year 3.
A) $6,404
B) $6,378
C) $6,295
D) $6,267
E) $6,006

Question

Quizplus · Accepted Answer

Nancy's account balance is calculated by considering the interest earned and the withdrawals made each year. After accounting for the interest and withdrawals over three years, the remaining balance is approximately $6,295.

Nancy Deposits $22,000 in an Investment Account Earning 4