Prudential Realty has an escrow account for one of its property management clients that contains $20,000. How long will it take to deplete t

Question

Prudential Realty has an escrow account for one of its property management clients that contains $20,000. How long will it take to deplete the account if the client withdraws $5000 now, $4500 one year from now, and amounts decreasing by $500 each year

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Julia 2 weeks 2021-11-19T18:57:51+00:00 1 Answer 0 views 0

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  1. Emma
    0
    2021-11-19T18:59:39+00:00

    Answer:

    It will take 4 years to deplete the account.

    Step-by-step explanation:

    Prudential Reality has an escrow account that contains $20,000.

    The client withdraws $5000 now and that leaves $15000.

    After one year an amount of $4500 is withdrawn which leaves ($15000 – $4500)  = $10500

    After two years an amount of $4000 is withdrawn which leaves ( $10500 -$4000) = $6500.

    After three years an amount of $3500 is withdrawn which leaves ( $6500 – $3500) = $3000

    After four years an amount of $3000 is withdrawn which leaves ($3000 – $3000) = $0 in the account.

    Hence it will take 4 years to deplete the account.

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