You would like to have

$56,000

in

14

years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn

10

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

10

percent on this deposit.)c.At the end of five years, you will receive

$20,000

and deposit this in the bank toward your goal of

$56,000

at the end of year

14.

In addition to the lump-sum deposit, how much must you deposit in equal annual amounts, beginning in year 1 to reach your goal? (Again, assume you can earn

10

percent on your deposits.)

Question content area bottom

Part 1

a.How much must you deposit annually to accumulate this amount?

$enter your response here

(Round to the nearest cent.)