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1. 2. You manage an investment fund that sells annuities. You sell a 7-year ordinary level annuity that makes monthly payments of $2,897 per month,
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You manage an investment fund that sells annuities. You sell a 7-year ordinary level annuity that makes monthly payments of $2,897 per month, starting next month. If interest rates are 2.11% APR (compounded monthly) what is the current price of this annuity? You expect that you will need to replace your furnace in 4 years at a cost of $16,835. How much must you save, each month for 16 months, starting next month (the same amount each month) if your savings account pays 2.27% APR (compounded monthly)Step by Step Solution
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