Question

Suppose that the parents of a young child decide to make account, with the first deposit being made on the child's fifth being made on the 15th birthday. Then, starting on the c annual deposits into a saving hild's 18th birthday (EOY), four withdrawals will be made. The sequence of the amounts o f withdrawals is $2000, $2400, $2800, and $3200. If the effecti ve annual interest rate is8% during this period, what are the annual deposits in years 5 through 152 Use a uniform gradient amount in your solution and support your work by drawing the cash flow diagram.

Answer 1

Assume that annual deposit Amounts of lui th drawls at EOY/8th years 20a Eo lathyear240 0 Amount of withdra at Foy 2, th Yea(=f2300 hai th drapl Amount of- Amount of ith dv aw) ot Eoy 215year 32 ist need to tt depiC at Eoy of 18th year we First 2300 (p/F, 8.4, 2) 2400 (r/F, e 7., l) + 2000-t 320s (p/F, 8%, 3) t $116803 this is the size of dep ost。E 18th Year which is du to annu depssits made belween year (s-I5) Again Find the rw oF size of deposit a16.02 o deposif $4163.0z at Eoy Istnyear Now these annued deposits made beten yeors to year Is

7273.9 XP/A, , 一Time duration is bef ween IS-5=10 7273. く,う100 x to94.0 Amount or deposit to bてmode annually Final an sw er Cash fto di agram 111』 行 づ si i uniform ArithrmatiL radian acfrv 2 F 2-4k can be used for ithdval 3 2