Starla has decided to retire in 12 years. She has $44,400 available today and wants to invest
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A. Assume Starla wants to accumulate $100,000 by her retirement date. Will she achieve her goal if she invests $44,400 today and earns 7%?
B. If Starla invests, a total of $44,400 through a series of 12 equal annual installments instead of a single amount, would Starla accumulate the desired $100,000? The first investment would be made one year from today. Show calculations and explain what you find.
C. If the amount accumulated in part A does not equal $100,000, approximately how many years would be required, assuming the same interest rate and equal annual deposits as above.
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Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
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