Required Lump-Sum Payment
To complete your last year in business school and then go
through law school, you will need $20,000 per year for 4 years,
starting next year (that is, you will need to withdraw the first
$20,000 one year from today). Your uncle offers to put you through
school, and he will deposit in a bank paying 8.61% interest a sum
of money that is sufficient to provide the 4 payments of $20,000
each. His deposit will be...