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1.Today,SandraSaverdeposited$2,750inanaccountpaying9.0%APR,compoundedeverythreemonths.Ifshemakesnofurtherdepositsorwithdrawalsforthenext13years,howmuchinterestwillsheearninyeartwo? 2.Thefirstyearlypaymentinatenyearannuity,$27,500,isduefouryearsfromtoday.Theannuityearns7.75%APR,compoundedmonthly.Ifpaymentsincreaseby3.5%peryearafterthefirstpayment,howmuchwilltheannuitybeworthrightafterthelastpaymentismade? 3. Consider the following stream of cash flows: $500 paid today, $950 paid two years from today, and $775 paid three years from
- 1.Today,SandraSaverdeposited$2,750inanaccountpaying9.0%APR,compoundedeverythreemonths.Ifshemakesnofurtherdepositsorwithdrawalsforthenext13years,howmuchinterestwillsheearninyeartwo?
- 2.Thefirstyearlypaymentinatenyearannuity,$27,500,isduefouryearsfromtoday.Theannuityearns7.75%APR,compoundedmonthly.Ifpaymentsincreaseby3.5%peryearafterthefirstpayment,howmuchwilltheannuitybeworthrightafterthelastpaymentismade?
- 3. Consider the following stream of cash flows: $500 paid today, $950 paid two years from today, and $775 paid three years from today. At an APR of 6.0% compounded every two months, what is the streams present value?
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