The amount to be deposited in the bank for five years is $1729.
The first step is to determine the present value of $3000.
Cash flow in year 1 - 4 = 0
Cash flow in year 5 - 7 = $300
I = 4%
PV calculated using a financial calculator = $7,116.48
The second step is to determine the future value of the present value calculated above
$7,116.48 x (1.04)^7 = $9,364.80
The third step is to determine the amount to be deposited each year for 5 years:
Amount = future value /annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
= [(1.04)^5 - 1] / 0.04 = 5.416323
Amount = $9,364.80/ 5.416323 = $1729
A similar question was solved here: brainly.com/question/24108530
