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IgorC [24]
3 years ago
13

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
Mathematics
1 answer:
ASHA 777 [7]3 years ago
5 0

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After one year an amount of $4500 is withdrawn which leaves ($15000 - $4500)  = $10500

After two years an amount of $4000 is withdrawn which leaves ( $10500 -$4000) = $6500.

After three years an amount of $3500 is withdrawn which leaves ( $6500 - $3500) = $3000

After four years an amount of $3000 is withdrawn which leaves ($3000 - $3000) = $0 in the account.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