Melissa agrees to contribute ($ 500) to the alumni fund at the end of each year for
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Melissa agrees to contribute \(\$ 500\) to the alumni fund at the end of each year for the next 5 years. Shannon wants to match Melissa's gift, but she wants to make a lump-sum contribution. If the current interest rate is \(2.5 \%\) compounded annually, how much should Shannon contribute to equal Melissa's gift?
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This is a problem of calculating the present value of an annuity based on regular annual contributio...View the full answer
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Sufiyan Ahmed Tariq
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