Assume that the present date is June $15,2021$ and that you wish to deposit a lump sum today so that you can withdraw $$100,000$ on June $15,2027,$ June $15,2028,$ and June $15,2029,$ respectively.Assume also that amounts on deposit will earn interest at the rate of $8\%$ until June $15,2027$ and then $10\%$ thereafter. What is the amount that needs to be deposited on June $15,2021?$

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To determine the amount that needs to be deposited on June 15 2021 in order to be able to withdraw 1... View the full answer