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( Comprehensive problem ) You would like to have $ 7 1 , 0 0 0 in 1 4 years. To accumulate this amount, you
Comprehensive problem You would like to have $ in years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn percent 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 lumpsum deposit today instead of the annual deposits, how large should the lumpsum deposit beAssume you can earn percent on this deposit.
c At the end of year you will receive $ and deposit it in the bank in an effort to reach your goal of $ at the end of year In addition to the lumpsum deposit, how much must you invest in equal annual deposits to reach your goal? Again assume you can earn percent on this deposit.
a How much must you deposit annually to accumulate this amount?
$ Round to the nearest cent.
Solve A B and C
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