Question
Today John is 30 years old . 5 years ago he opened a bank account and deposited 25,000 on his 25th birthday. Then he deposited
Today John is 30 years old . 5 years ago he opened a bank account and deposited 25,000 on his 25th birthday. Then he deposited 2,000 on his 26th birthday, 3,000 on his 27th birthday, 4,000 birthday and 5,000 on his 29th birthday. His goal is to have 400,000 on his 40th birthday. Starting from today, he will contribute a fixed amount every year on his birthday. He will proceed with 11 deposits, 1 today and the last one on his 40th birthday. Also, he is planning to withdraw 20,000 on his 35th birthday for a house deposit. what should be the amount of each of his deposits in order to reach his goal. Assume that the rate is 12% and will remain stable.
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