You plan to deposit into your bank account $100 two years from now, $200 three years from now and then to withdraw your full balance at the end of year 4. If you can earn 2% per year, how much wouldhave in your account by the end of year 4?O A. $308O B. $318Oc. $310O D. $312

A bank provides interest on the amount deposited or invested. Therefore, the withdrawal will consist…

Answered: You plan to deposit into your bank…

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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Starting next year, you will need $15,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $15,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $15,000 payments. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. $
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You plan to deposit into your bank account $100 two years from now, $200 three years from now and then to withdraw your full balance at the end of year 4. If you can earn 2% per year, how much woul have in your account by the end of year 4?