This problem demonstrates the dependence of the future value of an annuity on the interest rate. Suppose

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This problem demonstrates the dependence of the future value of an annuity on the interest rate. Suppose $1000 is invested at the end of each year for 20 years. Calculate the future value if the investments earn an annually compounded rate of return of

a 5%.

b. 6%.

c. 7%.

d. 8%.

Note that the future value increases proportionately more than the interest rate.

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