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An individual wishes to deposit a single sum of money in a savings account so that 5 equal annual withdrawals of $2000 can be made
An individual wishes to deposit a single sum of money in a savings account so that 5 equal annual withdrawals of $2000 can be made before depleting the fund.(Please draw cash flow diagram, take a photo and upload as a picture here. )
- If the first withdrawal is to occur 1 year after the deposit and the fund pays interest at the rate of 12% compounded annually, how much should be deposited?
- If the first withdrawal does not occur until 3 years after the deposit, find the amount of the deposit.
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