Starting next year, you will need $10,000 annually for 4 years to complete your education. (One year
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Starting next year, you will need $10,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $10,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $10,000 payments.
a. How large must the deposit be?
b. How much will be in the account immediately after you make the first withdrawal?
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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