Required lump sum payment
Starting next year, you will need $10,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $10,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $10,000 payments.
A. How large must the deposit be? Round your answer to the nearest cent.
$ _______
B. How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent.
$ _______