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1. You would like to have $50,000 in 15 years. To accumulate this amount you plan...

1. You would like to have $50,000 in 15 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 7% interest annually. Your first payment will be made at the end of the year. o How much must you deposit annually to accumulate this amount? o If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? o At the end of five years you will receive $10,000 and deposit this in the bank toward your goal of $50,000 at the end of 15 years. In addition to this deposit, how much must you deposit in equal annual deposits to reach your goal, again starting from the end of the first year?

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