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To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next
To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 7% interest a sum of money that is sufficient to provide the four payments of $20,000 each. His deposit will be made today. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter " 0 ". a. How large must the deposit be? $ b. How much will be in the account immediately after you make the first withdrawal? After the last withdrawal? After the first withdrawal: \$ After the last withdrawal: \$
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