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John Rider wants to accumulate $95,000 to be used for his daughter's college education. He would like to have the amount available on December 31,
John Rider wants to accumulate $95,000 to be used for his daughter's college education. He would like to have the amount available on December 31, 2023 . Assume that the funds will accumulate in a certificate of deposit paying 8% interest compounded annually. (FV of $1,PV of $1,FA of $1,PVA of $1,FAD of $1 and PVAD of $1 ) (Use appropriate factor(s) from the tables provided.) Answer each of the following independent questions. Required: 1. If John were to deposit a single amount, how much would he have to invest on December 31,2018 ? 2. If John were to make five equal deposits on each December 31, beginning a year later, on December 31 , 2019, what is the required amount of each deposit? 3. If John were to make five equal deposits on each December 31 , beginning now, on December 31 , 2018 , what is the required amount of each deposit? (For all requirements, Round your final answers to nearest whole dollar amount.)
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