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(Comprehensive problem) You would like to have $59,000 in 14 years. To accumulate this amount, you plan to doposit an equal sum in the bank
(Comprehensive problem) You would like to have $59,000 in 14 years. To accumulate this amount, you plan to doposit an equal sum in the bank each year that will eam 9 porcent 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 todny instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can oam 9 percent on this deposit) c. At the end of five years, you will recoive $20,000 and deposit this in the bank toward your goal of $59,000 at the end of year 14 . In adcibion to the lump-sum deposk, how much mist you deposit in equal annual amounts, beginning in year 1 to reach your goal? (Again, assume you can earn 9 percent on your deposits) a. How mach must you deposit annually to accumulate this amount? (Round to the nearest cent)
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