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1. If Mrs. Beach wanted to invest a lump sum of money to have $100,000 when she retired at 65 (she is 40 today) how

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1. If Mrs. Beach wanted to invest a lump sum of money to have $100,000 when she retired at 65 (she is 40 today) how much of a deposit would she have to make if: a) The interest rate on the C.D. is 5%? b) If she were to use common stock and earn an average rate of return of 10% c) What type of a problem is this? 2. If you have an obligation that is due in 5 years for $50,000 a. You could earn a 6% rate of return, how much would you need to deposit today to have the money in 5 years? low b. You could earn a 10% rate of return, how much would you need to deposit today to have the money in 5 years? svarlo bru 000,252 10 ma seniowe OY c. What type of a problem is this

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