<ol class="abc-list"><li><div class="list-item-content"><span class="list-item-text">An educational fund is started at $\$2000$ and the bank offers a compound interest at $2$% per annum. If withdrawals of $\$50$ are made at the beginning of each of the subsequent years, show that the amount in the fund at the beginning of the $\left( n+1 \right)$$^{\mathrm{th}}$ year is $\$500\left(5-\,\,{{1.02}^{n}}\right)$.</span></div><div class="list-item-paragraph">Find the amount in the fund to the nearest dollar after the 30$^{\mathrm{th}}$ withdrawal.</div><p style="text-align: right;">[1]</p><div class="list-item-paragraph">Calculate the number of years this educational fund can last. (The last withdrawal does not need to be $50.)</div><p style="text-align: right;">[2]</p><p style="text-align: right;">[3]</p></li></ol>

An educational fund is started at $\$2000$ and the bank offers a compound interest at $2$% per annum. If withdrawals of $\$50$ are made at the beginning of each of the subsequent years, show that the amount in the fund at the beginning of the $\left( n+1 \right)$$^{\mathrm{th}}$ year is $\$500\left(5-\,\,{{1.02}^{n}}\right)$.

Find the amount in the fund to the nearest dollar after the 30$^{\mathrm{th}}$ withdrawal.

Calculate the number of years this educational fund can last. (The last withdrawal does not need to be $50.)

2012 MI P1 Q5

2012 MI P1 Q5

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