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1. Calculate the future value of an annuity due which pays 400 every year for the next seven years, if the interest rate is 4.5%.

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1. Calculate the future value of an annuity due which pays 400 every year for the next seven years, if the interest rate is 4.5%. 2. Calculate the number of years it will take for X to save $50000 assuming she can invest $1250 annually at the end of every year. X also starts with a saving of $2000 today. The market interest rate is 8%. 3. You recently got promoted at your job. You have since decided to buy your dream car which costs $97.000. The car dealer tells you to pay 11,000 at the end of every year for the next 7 years after which you can take possession of the car at t=7. Given a market interest rate of 13%, is this a good deal

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