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-53 Modified (see template for modifications to the problem) You would like to have $500,000 in 20 years. To accumulate this amount, you plan

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-53 Modified (see template for modifications to the problem) You would like to have $500,000 in 20 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 7% interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum be? (Assume you can eam 7% on the deposit.) c. At the end of 10 years, you will receive $100,000 and deposit this in the bank toward your goal of $500,000 at the end of 20 years. In addition to this deposit, how much must you deposit in equal annual deposits to reach your goal (at 7%)? A. PV nper 7% 20 pmt $12,196.46 FV $500,000.00 B. PV nper pmt FV C. Step #1 PV i nper pmt FV Step#2 PV i nper pmt FV $129,209.50 7% 20 $0.00 $500,000.00 Hint: first in Step #1 determine how much $100K will be worth at the end of 20 years $100,000.00 7% 10 500,000- $196,715.14 Hint: in Step #2 for the FV figure use $500,000 minus the amount from Step #1 + Instructions & Questions P6-53M P6-54M P6-24M +

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