You would like to have $141,357.24 in 15 years. To accumulate this amount, you plan...
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You would like to have $141,357.24 in 15 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 10% interest compounded annually. Your first payment will be made at the end of the year.
a) How much must you deposit annually to accumulate this amount?
b) If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be? (assume you can earn 10% on this deposit)
c) At the end of 5 years, you will receive $30,000 & deposit it in the bank in an effort to reach your goal of $141,357.24 of at the end of 15 years. In addition to the deposit, how much must you deposit in equal annual deposits to reach your goal? (Again, assume you can earn 10% on this deposit) .
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