Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual. withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year I after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%?1 2.

Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual. withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year I after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%?1 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual
withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in
year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money
should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank
now, 5 years later, how much money should he expect to get with an interest rate of 5%? I
2.

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