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(1) What is the present worth of an investment that will yield $20,000 in 5 years at 10 % interest? (2) A 21-year old inherits
(1) What is the present worth of an investment that will yield $20,000 in 5 years at 10 % interest?
(2) A 21-year old inherits $100,000 from a distant relative who has deceased. She decides to spend some and invest the rest immediately in order to retire at 65 with a $1,000,000 savings account. At 8% interest compounded annually, how much must be invested?
(3) Given: F = $5,000, N = 5 years, and i = 7% find A.
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