Answer:
The five deposits will be for $ 1,263.360
Explanation:
at the given rate of 4%
we are going to do 5 deposits.
Then, after 5 years we subtract 3,000 dollar during 3 years:
First, we solve for the PV of tat annuity:
C 3,000.00
time 3
rate 0.04
PV $8,325.2731
Then, we discount for the 5 years waiting period:
Maturity $8,325.2731
time 5.00
rate 0.04000
PV 6,842.7676
Now, we solve for which annuity of 5 deposits generates that amount:
FV 6,843
time 5
rate 0.04
C $ 1,263.360