Problem:
Your brother needs $24,256 at the end of eight years, and his only investment outlet is a 9 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, he can make an initial investment at the beginning of the first year.
Required:
Question 1: What single payment could be made at the beginning of the first year to achieve this objective?
Question 2: What amount could he payat the end of each year annually for eight years to achieve this same objective?
Note: Explain all steps comprehensively.