Question content area top

Part $1$

$($Comprehensive problem$)$You would like to have

$$$$53$ comma $00053,000$

in

$1515$

years. To accumulate this$$ amount, you plan to deposit an equal sum in the bank each year that will earn

$99$

percent interest compounded annually. Your first payment will be made at the end of the year.

a$.$How much must you deposit annually to accumulate this$$ amount?

b$.$If you decide to make a large$$ lump$-$sum deposit today instead of the annual$$ deposits, how large should this$$ lump$-$sum deposit$$ be$?($Assume you can earn

$99$

percent on this$$ deposit.$)$

c$.$At the end of five$$ years, you will receive

$$$$15$ comma $00015,000$

and deposit this in the bank toward your goal of

$$$$53$ comma $00053,000$

at the end of year

$1515.$

In addition to the$$ lump$-$sum deposit, how much must you deposit in equal annual$$ amounts, beginning in year $1$ to reach your$$ goal? $($Again$,$ assume you can earn

$99$

percent on your$$ deposits.$)$

Question content area bottom

Part $1$

a$.$How much must you deposit annually to accumulate this$$ amount?

$$$$1805\mathrm{.}101805\mathrm{.}10$

$($Round to the nearest$$ cent.$)$

Part $2$

b$.$If you decide to make a large$$ lump$-$sum deposit today instead of the annual$$ deposits, how large should the$$ lump$-$sum deposit$$ be$?$

$$$enter your response here$$

$($Round to the nearest$$ cent.$)$