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1. ABC Corporation will receive $40,000 today (January 1, 2020), and also on each January 1st for the next five years (2021 2025). What is
1. ABC Corporation will receive $40,000 today (January 1, 2020), and also on each January 1st for the next five years (2021 2025). What is the present value of the six $40,000 receipts, assuming a 8% interest rate? 2. Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that she will need $20,000 for her dream vacation. If she is able to earn 12% interest compounded semiannually on an investment, how much will she have to set aside today so that she will have sufficient funds available? for 15 years if the first $5 is 3. How much must be invested now to receive $50, received today and the rate is 10%? 4. On January 15, 2010, ABC Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2014, at an estimated cost of $4,000,000. ABC plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2010. ABC should make four annual deposits of
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