How much must you deposit in equal annual deposits to reach


You would like to have $34000 in 14 years. To accumulate this amount, you plan to deposit each year an equal sum in the bank, which will earn 5% interest compounded annually. Your first payment will be made at the end of the year a- How much must you deposit annually to accumulate $34000 in 14 years? (Round to the nearest cent) 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 5% on this deposit) (Round to the nearest cent) c- At the end of 5 year you will receive $9000 and deposit this in the bank toward your goal of $34000 at the end of 14 years. In addition to this deposit, how much must you deposit in equal annual deposits to reach your goal? (Again assume you can earn 5% on this deposit) (Round to the nearest cent)

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Financial Management: How much must you deposit in equal annual deposits to reach
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