Suppose that the parents of a young child decide to make annual deposits into a savings​ account, with the first deposit being made on the​ child's fifth birthday and the last deposit being made on the 15th birthday.​ Then, starting on the​ child's 18th​ birthday, the withdrawals as shown on the diagram below will be made. If the effective annual interest rate is ​6% during this period of​ time, what are the annual deposits in years 5 through​ 15? Use a uniform gradient amount​ (G) in your solution.  The annual deposits in years 5 through 15 are $?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Suppose that the parents of a young child decide to make annual deposits into a savings​ account, with the first deposit being made on the​ child's fifth birthday and the last deposit being made on the 15th birthday.​ Then, starting on the​ child's 18th​ birthday, the withdrawals as shown on the diagram below will be made. If the effective annual interest rate is ​6% during this period of​ time, what are the annual deposits in years 5 through​ 15? Use a uniform gradient amount​ (G) in your solution. 

The annual deposits in years 5 through 15 are $?

 

3,200
2,800
2,400
2,000
Years
j = 6% / yr
5th
Birthday 6 7 8 9
10
11
12 13
14 15 16
17
18 19 20 21
A = ?
Transcribed Image Text:3,200 2,800 2,400 2,000 Years j = 6% / yr 5th Birthday 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 A = ?
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