For the last 10 years you have been depositing a fixed amount into your savings account. You have been doing that once a year at the beginning of each year. You now have $35,000 in your account.
What has the dollar amount of each deposit been if you’ve been consuming your interest, in other words, each year you’ve been withdrawing the accumulated interest and spending it? The annual interest rate for the last 10 years was 4%. Calculate and explain in words all calculations.
How much of the annual deposit would’ve been enough if you instead kept all accumulated money in the savings account each year without spending any? Calculate and explain in words all calculations.