A savings account problem

R15000 is deposited into a savings account paying 5 percent interest and R1000 is withdrawn from the account at the end of each year. Approximately how many years will be required for the savings account depleted? (Note: at the end of a certain year the balance is R1000 or less, then the final withdrawal will consist of that balance and the account will be depleted.)

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  • : R15000 is deposited into a savings account paying 5 percent interest and R1000 is withdrawn from the account at the end of each year. Approximately how many years will be required for the savings account depleted? (Note: at the end of a certain year the balance is R1000 or less, then the final withdrawal will consist of that balance and the account will be depleted.)
    :
    I caluculate at the end of the 28th year the account balance is $419.32 and therefore you cannot take $1000 out any longer. I have used dollars and make the assumption that you use rounding to the nearest cent at the end of each year and that interest is calculated at the end of each year.

    John
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