How large must the deposit be

Reference no: EM13294860

To complete your last year in business school and then go through law school, you will need $30,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $30,000 one year from today). Your rich uncle offers to put you through school, and he will deposit in a bank paying 5.65% interest a sum of money that is sufficient to provide the 4 payments of $30,000 each. His deposit will be made today.

a.How large must the deposit be? Round your answer to the nearest cent.

b.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.

Reference no: EM13294860

Questions Cloud

Could your choice of banks be influenced by the fact : Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year?

Explain quantity of an analyte with a molecular mass : A sample with an unknown quantity of an analyte with a molecular mass of 71.24g/mol was dissolved in 250mL of ethanol. Then 5.0mL was withdrawn and diluted to 200mL.

Annual profit in thousands of dollars : Annual profit in thousands of dollars is given by the function, P(x) = 100vx-5 + 3,000, where x is the number of items sold in thousands, x = 5.

Compute the speed of the shuttle : The space shuttle orbits at a distance of about 300 km above the surface of the earth. Find the speed of the shuttle

How large must the deposit be : Your rich uncle offers to put you through school, and he will deposit in a bank paying 5.65% interest a sum of money that is sufficient to provide the 4 payments of $30,000 each. His deposit will be made today.

How much would he have after the same three time periods : how much would he have after the same three time periods? use the money in motion calculator to calculate each amount and comment on the differences over time.

How long will it take to double your money : If you deposit money today in an account that pays 8.6% annual interest, how long will it take to double your money? Round your answer to the nearest whole.

What fraction of the payment made at the end of second year : Your company is planning to borrow $2,250,000 on a 9-year, 12%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal plac..

Find the speed of the electron as it orbits the proton : The distance between the electron and proton in a hydrogen atom is 5.3 x10-11 m. Find the speed of the electron as it orbits the proton

User Account

All Pages