​(Comprehensive problem) You would like to have
​$70,000
in
16
years. To accumulate this​ amount, you plan to deposit an equal sum in the bank each year that will earn
10
percent interest compounded annually. Your first payment will be made at the end of the year.
c. At the end of year​ 5, you will receive
​$20,000
and deposit it in the bank in an effort to reach your goal of
​$70,000
at the end of year
16.
In addition to the​ lump-sum deposit, how much must you invest in
16
equal annual deposits to reach your​ goal? ​ (Again, assume you can earn
10
percent on this​ deposit.)