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28-8: Future Value of an Ordinary Annuity Problem 28-24 Required Lump-Sum Payment To complete your last year in business school and then go through law school, you will need $5,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $5,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 7.08% interest a sum of money that is sufficient to provide the 4 payments of $5,000 each. His deposit will be made today. 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. How much will be in the account immediately after you make the last withdrawal? Round your answer to the nearest cent. Enter O if required

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Home nert Page Layout Formulas Data Review View dd-Ins s Cut ta copy. Σ AutoSum ー E ゴWrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard GA185 FT Font Alignment Number Cells Formula Bar FU FV FW FX FY FZ GA GB GD GE GF 167 168 169 170 PMT YEARS RATE 5000 4 7.08% 172 173 174 175 176 HOW LARGE MUST THE DEPOSIT BE? ANSWER $16,905.51 EXCEL-PV(7.08%,4-5000) MONEY IN THE ACCOUNT AFTER FIRST WITHDRWAL WE HAVE TO CALCULATE PV AFTER A YEAR 178 179 180 181 182 183 184 185 ANSWER 13,102.42 EXCEL-PV(7.08%,3,5000) AFTER LAST WITHDRAWAL, THE BALANCE WILL BECOME ZERO STILL WANT TO CALCULATE ANSWER $ 0.00 EXCEL-PV(7.08%,0,-5000) CAP STRU VALUE ols LOCK BOX DILUTION DOLLAR COST AVG . MORTGAGE , EXPO , Sheet1 . Sheet2 . Sheet3 Sheet4く rences: x261 03:19 19-01-2019

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