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5. (20 points) Mixed-payment series. How much do you have to deposit now (with a second deposit in the amount of $600 at the end of the first year) so that you will be able to withdraw $250 at the end of the second year through the fourth year, and $500 at the end of the fifth and sixth year, if the bank pays you 4% annual interest on your balance? Method: Formulas. Create a cash flow diagram for this problem.

5. (20 points) Mixed-payment series. How much do you have to deposit now (with a second deposit in the amount of $600 at the end of the first year) so that you will be able to withdraw $250 at the end of the second year through the fourth year, and $500 at the end of the fifth and sixth year, if the bank pays you 4% annual interest on your balance? Method: Formulas. Create a cash flow diagram for this problem.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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5. (20 points) Mixed-payment series. How much do you have to deposit now (with a second deposit in the amount of $600 at the end of the first year) so that you will be able to withdraw $250 at the end of the second year through the fourth year, and $500 at the end of the fifth and sixth year, if the bank pays you 4% annual interest on your balance? Method: Formulas. Create a cash flow diagram for this problem.
Transcribed Image Text:5. (20 points) Mixed-payment series. How much do you have to deposit now (with a second deposit in the amount of $600 at the end of the first year) so that you will be able to withdraw $250 at the end of the second year through the fourth year, and $500 at the end of the fifth and sixth year, if the bank pays you 4% annual interest on your balance? Method: Formulas. Create a cash flow diagram for this problem.
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