You deposit $50,000 in the bank today. What amount should you deposit in year 10, if you wish to accumulate $400,000 in year XXXXXXXXXXif the interest rate is 7%? (Show work) You expect to receive...

1. You put in $50,000 in the bank today. What is the FV of this deposit in year 10 if the interest rates is 5% from years 0 to 5 and 6% from years 5 to 10?
Solution
Principal amount, P    =    $50,000
Time of deposit    =    10 years
            =    5 years (n1) + 5 years (n2)
Rate of Interest, R1 for first 5 years (n1)    =    5%
Rate of Interest, R2 for next 5 years (n2)    =    6%
Therefore,
The FV of deposit in 10 years    =    P×(1 + R1)n1 × (1 + R1)n2
                =    50,000 × (1 + 0.05)5 × (1 + 0.06)5
                =    50,000 × 1.2763 × 1.3382
                =    $85,397.23
2. You...