Question: Doc Cottle is considering opening a new office in five years and estimates the startup costs will be $ 5 5 , 0 0 0

Doc Cottle is considering opening a new office in five years and estimates the startup costs will be $55,000. Market interest rates are 4%. Explain how to calculate using finance calculator (BA II) and what to enter to get results.
a. How much must Doc Cottle deposit now to have the desired amount in five years?
b. If the market interest rate starts at 4% for the first two years and then changes to 2% for the last three years, how much must be invested today to have the startup
funds in five years?
c. If Doc Cottle decides to invest an additional $2,000 at the end of each year for the five years, how much must he invest today to have the $55,000 in five years?

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