A person wants to deposit anunknown lump-sum amount into aninvestment opportunity 2 years fromnow that is large enough to withdraw$4000 per year for state universitytuition for 5 years starting 3 years fromnow. The interest rate is 10%/year. Theclosest amount of the lump sum is:

Step 1:We have to calculate the amount of lump sum which will be deposited 2 years from now.We have…

Answered: A person wants to deposit an unknown…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Typed plz and asap thanks wrong answer not accepted quality solution will get vpvote thanks
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A person wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now that is large enough to withdraw $4000 per year for state university tuition for 5 years starting 3 years from now. The interest rate is 10%/year. The closest amount of the lump sum is: