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( Comprehensive problem ) You would like to have $ 5 8 , 0 0 0 in 1 2 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 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 this lumpsum deposit beAssume you can earn percent on this deposit.
c At the end of five years, you will receive $ and deposit this in the bank toward your goal of $ at the end of year In addition to the lumpsum deposit, how much must you deposit in equal annual amounts, beginning in year to reach your goal? Again assume you can earn percent on your deposits.
a How much must you deposit annually to accumulate this amount?
Round to the nearest cent.
b If you decide to make a large lumpsum deposit today instead of the annual deposits, how large should the lumpsum deposit be
Round to the nearest cent.
c If you deposit $ received at the end of five years in the bank, what will the amount grow to by the end of year
Round to the nearest cent.
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