Suppose a child's parents decide to make annual deposits to a savings account, making the first deposit on their child's fifth birthday and the last deposit on their fifteenth birthday. If on the 18th, 19th, 20th and 21st birthdays ¢ 2,000, ¢ 2,400, ¢ 2,800 and ¢ 3,200 are withdrawn and the interest rate is 8% per year. What are the annual deposits in years five to fifteen?

Suppose a child's parents decide to make annual deposits to a savings account, making the first deposit on their child's fifth birthday and the last deposit on their fifteenth birthday. If on the 18th, 19th, 20th and 21st birthdays ¢ 2,000, ¢ 2,400, ¢ 2,800 and ¢ 3,200 are withdrawn and the interest rate is 8% per year. What are the annual deposits in years five to fifteen?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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