How much must you deposit annually to accumulate amount

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You would like to have ?$50,000 in 15 years. To accumulate this? amount, you plan to deposit an equal sum in the bank each year that will earn 7 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 7 percent on this? deposit.)

c. At the end of five? years, you will receive ?$10,000 and deposit this in the bank toward your goal of ?$50,000 at the end of year 15. 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 7 percent on your? deposits.)

Reference no: EM132245039

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