I need answer of this question general finance To complete your last year in business school and then go throughlaw school, you will need $35,000 per year for 4 years, startingnext year (that is, you will need to withdraw the first $35,000 oneyear from today). Your uncle offers to put you through school, andhe will deposit in a bank paying 7.77% interest a sum of money thatis sufficient to provide the 4 payments of $35,000 each. Hisdeposit will be made today.a. How large must the deposit be?b. How much will be in the account immediately after you makethe first withdrawal?c. How much will be in the account immediately after you makethe last withdrawal?

Here's the breakdown of the calculations step by step:a. How large must the deposit be?We use the…

Answered: To complete your last year in business…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 8E

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To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 6.62% interest a sum of money that is sufficient to provide the 4 payments of $20,000 each. His deposit will be made today. How large must the deposit be? Round your answer to the nearest cent.$ How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent.$ How much will be in the account immediately after you make the last withdrawal? Round your answer to the nearest cent. Enter "0" if required$
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