Question: Your uncle has offered to make five $700-per-year deposits into an account in your name starting now. You have agreed not to withdraw any money
Your uncle has offered to make five $700-per-year deposits into an account in your name starting now. You have agreed not to withdraw any money until the end of year 9, at which time you plan to remove $3000. Further, you plan to withdraw the remaining amount in three equal year-end installments after the initial withdrawal to zero-out the account. Indicate the cash flows for your uncle and yourself on one diagram.
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a Uncle There are 5 cash outflows from year 0 to year 4 each 700 Total 3500 b Cash inf... View full answer
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