Discount rate 8%

Year CashFlow
0 -600
1 100
2 100
3 100
4 100
5 100
6 100
7 100
8 100
9 100
10 100

Goal Seek Method

Discount rate 11%
NPV 0 =B5+NPV(B18,B6:B15)
IRR 11%
Formula Method
NPV 0
IRR 11% =IRR(B5:B15)
 Cost 10000
Interest 15%
Loan Term 6
Payment 2642 =PMT(B3,B4,-B2)

Year Principal at begning of year Payment at end of year Interest

1 10000 2642 1500
2 8858 2642 1329
3 7545 2642 1132
4 6034 2642 905
5 4298 2642 645
6 2300 2642 345
Return of principal
1142
1313
1510
1737
1997
2297
 Interest 8%
Annual withdrawal 25000
Annual Deposit 15278 =(B3*11)/18

Year Account balance, beginning of year Deposit at beginning of year

1 0 15278
2 16500 15278
3 34320 15278
4 53566 15278
5 74352 15278
6 96800 15278
7 121045 15278
8 147228 15278
9 175507 15278
10 206048 15278
11 239032 15278
12 274655 15278
13 313127 15278
14 354678 15278
15 399552 15278
16 448016 15278
17 500358 15278
18 556887 15278
19 617938 -25000
20 640373 -25000
21 664603 -25000
22 690771 -25000
23 719033 -25000
24 749555 -25000
25 782520 -25000
26 818121 -25000
27 856571 -25000
28 898097 -25000
29 942945 -25000
Interest earned during year Total in accounts, end year
1222 16500
2542 34320
3968 53566
5508 74352
7170 96800
8966 121045
10906 147228
13001 175507
15263 206048
17706 239032
20345 274655
23195 313127
26272 354678
29596 399552
33186 448016
37064 500358
41251 556887
45773 617938
47435 640373
49230 664603
51168 690771
53262 719033
55523 749555
57964 782520
60602 818121
63450 856571
66526 898097
69848 942945
73436 991380