Question: Steve Eckel recently set up a TDA to save for his retirement. He arranged to have $115 taken out of each of his biweekly checks;

Steve Eckel recently set up a TDA to save for his retirement. He arranged to have $115 taken out of each of his biweekly checks; it will earn

9 7/8%

interest. He just had his twenty-ninth birthday, and his ordinary annuity comes to term when he is 65. (Round your answers to the nearest cent.)

(a) Find the present value of the given annuity. $ (b) Interpret the present value of the given annuity.

You would have to invest a lump sum of ____$ now instead of $115 biweekly.

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