Question
ou open an account and make a deposit today. You plan to make the following withdrawals from the account. The first withdrawal will occur 4
ou open an account and make a deposit today. You plan to make the following withdrawals from the account. The first withdrawal will occur 4 years from today (i.e., no withdrawals in years 1, 2, and 3). The remaining withdrawals will be in years 5, 6, 7, and 8 from now. The annual rate of return is 7 percent for years 1 through 3 and 10 percent for years 4 through 8. How much do you have to deposit into the account today?
__________________________________________
Year (from today) Withdrawal ___________________________________________ 4 $10,000 5 $15,000 6 $25,000 7 $30,000 8 $40,000 _________________________________________
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