Question
) You would like to have $33 comma 00033,000 in 1515 years. To accumulate this amount you plan to deposit each year an equal sum
) You would like to have $33 comma 00033,000 in 1515 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 99 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can earn 99 percent on this deposit.) c. At the end of 66 years you will receive $12 comma 00012,000 and deposit this in the bank toward your goal of $33 comma 00033,000 at the end of 1515 years. In addition to this deposit, how much must you deposit in equal annual deposits to reach your goal? (Again assume you can earn 99 percent on this deposit.)
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