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How large must the deposit be

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Problem - REQUIRED LUMP SUM PAYMENT - Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 6% annual interest, which will provide the needed $5,000 payments.

a. How large must the deposit be?

b. How much will be in the account immediately after you make the first withdrawal?

Reference no: EM132822458

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