Caleb Brewster did an excellent job saving for retirement. He was able to save $

Question

Caleb Brewster did an excellent job saving for retirement. He was able to save $1,000,000 in an account that pays 12 percent per year. His plan was to eventually withdraw all his money by paying himself in equal installments every month during his 20 years of retirement, which he did for exactly 10 years. However, poor Mr. Brewster died exactly 10 years after he retired before receiving the remaining monthly payments he was due. How much money was left in Mr. Brewster's account on the day he died?

Explanation / Answer

$756,444.97 so $ 756444.97 was left in his account.

no of period 20 PV 1000000 rate 12% pmt 133878.78 Now, money left after 10 years no of period 10 rate 12% pmt 133878.78 PV

$756,444.97 so $ 756444.97 was left in his account.

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