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1) You wish to save $30,000 by making $1000 deposits at the end of each month. If the bank pays 4% compounded monthly, then
1) You wish to save $30,000 by making $1000 deposits at the end of each month. If the bank pays 4% compounded monthly, then how many full deposits are needed and what is the amount of the smaller concluding deposit at the end of the next month? (13 points) 2) The Carrolls have $100,000 in a bank. If they get 5% compounded monthly and withdraw $5000 at the end of each month, how many withdrawals can they make? What will be the size of the concluding withdrawal if it is made one month after the last full withdrawal? (12 points)
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