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    Tuition Payment Using Bank Account Annually Compounded Interest

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    Tuition is $10,000 per year for 4 years starting next year (that is, I will need to withdraw the first $10,000 on year from today).
    A deposit in a bank will be made today; bank will pay 7% interest, compounded annually, a sum of money that is sufficient to provide the 4 payments of $10,000 each.
    a) how large will the deposit be?
    b) how much will be in the account immediately after you make the 1st withdrawal?

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    https://brainmass.com/business/annuity/tuition-payment-bank-account-annually-compounded-interest-171679

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    Please find the solutions attached.

    Tuition is $10,000 per year for 4 years starting next year (that is, I will need to withdraw the first $10,000 on year from today).
    A deposit in a bank will be made today; ...

    Solution Summary

    The expert examines calculations in a document and excel file. The expert examines tuition payment using bank accounts annually compounded interest.

    $2.19

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