Deposit single sum of money in savings account

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Reference no: EM131448531

A. Troy Long wishes to deposit a single sum of money in a savings account so that five equal annual withdrawals of $2,000 can be made before depleting the fund. If the first withdrawal is to occur 1 year after the deposit and the fund pays interest at a rate of 5% compounded annually, how much should be deposit?

B. suppose the first withdrawal does not occur until 3 years after the deposit. How much should be deposited? (i.e. there are still 5 withdrawals, but starting at year 3, rather than year 1)

Reference no: EM131448531

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