artin ng hext year, you will heed $10,000 anhually years to complete your education. (One year fr oday you will withdraw the first $10,000.) Your un eposits an amount today in a bank paying 5% ann
artin ng hext year, you will heed $10,000 anhually years to complete your education. (One year fr oday you will withdraw the first $10,000.) Your un eposits an amount today in a bank paying 5% ann
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Starting next year, you will need $10,000 annually for
4 years to complete your education. (One year from
today you will withdraw the first $10,000.) Your uncle
deposits an amount today in a bank paying 5% annual
interest, which will provide the needed $10,000
payments.
a. How large must the deposit be?
b. How much will be in the account immediately after
you make the first withdrawal?
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