A bank account in which interest is earned at 2% per year,

Chapter , Problem 13.3.27

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A bank account in which interest is earned at 2% per year, compounded annually, starts with a balance of $50,000. Payments of $1000 are made out of the account once a year for 10 years, starting today. Interest is earned right before each payment is made. (a) What is the balance in the account right after the tenth payment is made? (b) Assume that the tenth payment exhausts the account. What is the largest yearly payment that can be made from this account?

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