Calculate the present worth of both gradients

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An engineer recommend to his boss that if they start investing funds this year in the amount of $20,000 and increase the deposit each year by $5,000 for four years for a total of five years, they should have enough money invested to start withdrawing $50,000 a year at year six decreasing by $10,000 a year until year 10.

Problem 1: Calculate the present worth of both gradients to determine if the deposits will be sufficient to cover all of the withdrawals. Use interest rate of 7%.

Reference no: EM132781171

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