Starting next year, you will need $25,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $25,000.) Your uncle deposits an amount today in a bank paying 4% annual Interest, which will provide the needed $25,000 payments. a. How large must the deposit be? Do not round Intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round Intermediate calculations. Round your answer to the nearest cent. $
Starting next year, you will need $25,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $25,000.) Your uncle deposits an amount today in a bank paying 4% annual Interest, which will provide the needed $25,000 payments. a. How large must the deposit be? Do not round Intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round Intermediate calculations. Round your answer to the nearest cent. $
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 36P
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