Question: 5 - 3 1 REQUIRED LUMP SUM PAYMENT Starting next year, you will need $ 5 , 0 0 0 annually for 4 years to

5-31
REQUIRED LUMP SUM PAYMENT Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 6% annual interest, which will provide the needed $5,000 payments.
a.
How large must the deposit be?
b.
How much will be in the account immediately after you make the first withdrawal?

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