What is the required amount of each deposit

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John Rider wants to accumulate $100,000 to be used for his daughter's college education. He would like to have the amount available on December 31, 2023. Assume that the funds will accumulate in a certificate of deposit paying 8% interest compounded annually.

Required:

Answer each of the following independent questions.

Question 1: If John were to deposit a single amount, how much would he have to invest on December 31, 2018?

Question 2: If John were to make five equal deposits on each December 31, beginning on December 31, 2019, what is the required amount of each deposit?

Question 3: If John were to make five equal deposits on each December 31, beginning on December 31, 2018, what is the required amount of each deposit?

Reference no: EM132463426

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