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We start a savings account with a balance of $5000. Then, we wish to add...

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Accounting

We start a savings account with a balance of $5000. Then, we wish to add $200/month for 5 years. At that point, we wish to withdraw equal amounts of money in 5 equal disbursements taken at 1-year intervals and at the end of each year (at the ends of years 6, 7,8, 9, and 10). The account will be empty after these 5 withdrawals. Which of the following depicts how we could set this up in a single formula in Excel? Interest rate is 5.5% and compounded monthly.

=PMT(0.055,5,0,FV(0.055/12,60,-200,-5000)) =PMT(EFFECT(0.055,12),5,0,-FV(0.055/12,60,200,5000)) =PMT(0.055/12,60,0,FV(0.055/12,60,200,5000)) =PMT(EFFECT(0.055,12),5,-FV(0.055/12,60,-200,-5000),0) =PMT(EFFECT(0.055/12,12),5,0,FV(0.055,12,-200,-5000))

work must be done in excel. show working

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