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Starting next year, you will need $12900 annually for 4 years to complete your education. (One year from today you will withdraw the first $12900.)
Starting next year, you will need $12900 annually for 4 years to complete your education. (One year from today you will withdraw the first $12900.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $12900 payments.
a) How large must the deposit be?
b) How much will be in the account immediately after you make the first withdrawal?
(using formula if possible )
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