Assume that you have a child who will go to university 2 years later. You will need $8,000 per year for four years. The first withdrawal of $8,000 will be made 2 years from today. So you have decided to deposit in a bank paying 6% interest a sum of money that is sufficient to provide the four payments of $8,000 each. (Rounded to two decimals)

（1） How much must you deposit today?

（2） How much will be in the account immediately after you make the first withdrawal?

Answer rating: 100% (QA)

To calculate the amount you need to deposit today and the balance immediately after making the first ... View the full answer