(Comprehensive problem)You would like to have

$72,000

in

16

years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn

7

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 lump-sum deposit today instead of the annual deposits, how large should thelump-sum deposit be? (Assume you can earn

7

percent on this deposit.)

c.At the end of year 5, you will receive

$15,000

and deposit it in the bank in an effort to reach your goal of

$72 comma 00072,000

at the end of year

16

In addition to the lump-sum deposit, how much must you invest in

16

equal annual deposits to reach your goal? (Again, assume you can earn

7

percent on this deposit.)