A saver wants $100,000 after ten years and believes that it is possible to earn an annual
Question:
A saver wants $100,000 after ten years and believes that it is possible to earn an annual rate of 8 percent on invested funds.
a) What amount must be invested each year to accumulate $100,000 if
(1) The payments are made at the beginning of each year or
(2) If they are made at the end of each year?
b) How much must be invested annually if the expected yield is only 5 percent?
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a The future value of a sum of an annuity except the amount of the annual contribution ...View the full answer
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