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A company that manufactures purgable hydrogen sulfide monitors will make deposits such that each one is...

A company that manufactures purgable hydrogen sulfide monitors will make deposits such that each one is 7% larger than the preceding one. How large must the first deposit at the end of year 1 be if the deposits extend through year 10 and the 5th deposit is $4000? Use an interest rate of 11% per year. The first deposit at the end of year 1 must be $

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Answer #1

5th deposit = $ 4000

growth rate = 7%

First deposit at the end of year 1 = F

F x (1 + 7%)4 = 4000

F = $ 3051.6

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