Suppose that the parents of a young child decide to make annual deposits into a savings account, with first deposit being made on the child's fifth birthday and the last deposit on the fifteenth birthday. Then starting on the Childs eighteenth birthday up to his 22 nd birthday, withdrawals of p100.000 ever years are to be made, If the interest rate is 8%0 compounded continuously, what are the annual deposits in years five through fifteen?

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ANSWER The deposits for years 5 through 15 are 12500 14286 16216 18325 20625 23135 25870 28850 32094 35616 39433 43562 48028 52854 EXPLANATION The balance of the account at the beginning of year 5 is ... View the full answer