The surplus is deposited at the end of the year

Reference no: EM131016506

A municipality estimates that its annual surplus will be approximately $80,000 each year over the next 9 years. It always deposits its money in the Second National Bank. The Second National Bank offers the municipality an interest rate of 4.2% annually. Additionally, the municipality withdraws $22,000 at the end of years 3, 5, and 7. What is the amount of money in the municipality surplus account at the end of 9 years?
You are to assume

1. The surplus is deposited at the end of the year (so the first deposit is made 1 year after time 0, and the end of year one).

2. At time 0, the municipality's account has $81,000

Reference no: EM131016506

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