How large must the deposit be

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Reference no: EM13302043

You need $20,000 annually for 4 years to complete your education, starting next year. (You would withdraw the first $20,000 one year from today.) Your uncle will deposit an amount today in a bank paying 6% annual interest, which would provide the needed $20,000 payments.

a. How large must the deposit be?
b. How much will be in the account immediately after you make the first withdrawal?

Reference no: EM13302043

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