Question: Your rich uncle will help pay for your college by putting 50,000 into an account in the Lawrence Saving Bank at 7.5% interest for 8

Your rich uncle will help pay for your college by putting 50,000 into an account in the Lawrence Saving Bank at 7.5% interest for 8 years. Then one year later, you start to take out the money in equal amount for 7 years. After this period, the account is drawn down to zero. How much can you take out every year? To help, create a cash flow diagram.

Emma will deposit $70,000 in the Lowell Commercial Bank and keep it there for 6 years. The Bank pays 5.9% per year. What is the value of the account after this period?

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