2. A firm will establish a fund at the beginning of year 1 to provide the...

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2. A firm will establish a fund at the beginning of year 1 to provide the following expenditures: payments of $6000 each at the end of each year for years 1 to 6, inclusive; a paymėnt of $19,000 at the end of year 4. To allow for contingencies, the firm wishes to have a balance of $4500 in the fund when the last payment is made. If the interest rate of the fund is 7.5% per annum, What must the amount of the deposit? (8) 2. A firm will establish a fund at the beginning of year 1 to provide the following expenditures: payments of $6000 each at the end of each year for years 1 to 6, inclusive; a paymėnt of $19,000 at the end of year 4. To allow for contingencies, the firm wishes to have a balance of $4500 in the fund when the last payment is made. If the interest rate of the fund is 7.5% per annum, What must the amount of the deposit? (8)

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