Problem 4-24 Required Lump-Sum Payment

To complete your last year in business school and then go through law school, you will need $5,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $5,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 9.8% interest a sum of money that is sufficient to provide the 4 payments of $5,000 each. His deposit will be made today.

1. How large must the deposit be? Round your answer to the nearest cent. $
2. How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent. $ How much will be in the account immediately after you make the last withdrawal? Round your answer to the nearest cent. Enter "0" if required $