You need $28,974 at the end of 10 years, andyour only investment outlet is an 8 percent long-term certificate ofdeposit (compounded annually). With the certificate of deposit, you make an initialinvestment at the beginning of the first year.
a. What single payment could be made at the beginning of the first yearto achieve thisobjective?
b. What amount could you pay at the end of each year annually for 10 yearsto achieve this same objective?