How large must the deposit be

Reference no: EM13298640

To complete your last year in business school and then go through law school, you will need $25,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $25,000 one year from today). Your rich uncle offers to put you through school, and he will deposit in a bank paying 4.01% interest a sum of money that is sufficient to provide the 4 payments of $25,000 each. His deposit will be made today.

How large must the deposit be? Round your answer to the nearest cent.
$

How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent.
$

How much will be in the account immediately after you make the last withdrawal? Round your answer to the nearest cent.

Reference no: EM13298640

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