You would like to have 56000 in 12 years to accumulate this


You would like to have $56,000 in 12 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 6 percent interest compounded annually. Your first payment will be made at the end of the year. How much must you deposit to accumulate this amount? If you decide to make a large lump sum deposit today instead of annual deposits how large should this sum be? At the end of 6 years you will receive $10,000 and deposit this in the bank towards your goal of $56,000 at the end of 12 years?

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Financial Management: You would like to have 56000 in 12 years to accumulate this
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