1.Ali has just retired and will receive an annuity of $1,900 per month for 20 years. Payments...
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1.Ali has just retired and will receive an annuity of $1,900 per month for 20 years. Payments are made at the end of each month. If he uses a discount rate with an annual return of 7%, what is the present value of his annuity?
2.You plan to deposit $300 into a savings account at the beginning of each month for the next years. Suppose the bank offers 5% compounded monthly, calculate the value that you would accumulate at year 6. What would happen if the payments were made at the end of each month?
3.A 45-year old woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 9 percent on this savings. How much will she have accumulated if she retires at age 65?
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