Problem: Tuition is $10,000 per year for 4 years starting next year (that is, I will need to withdraw the first $10,000 on year from today).
A deposit in a bank will be made today; bank will pay 7% interest, compounded annually, a sum of money that is sufficient to provide the 4 payments of $10,000 each.
a) How large will the deposit be?
b) How much will be in the account immediately after you make the 1st withdrawal?