Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit two withdrawals: $40,000

Question:

Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit two withdrawals: $40,000 at the end of 4 years and $50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.