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2. You want to buy a big boat when you retire. You anticipate needing $130,000 to buy the boat when you retire in 20 years.
2. You want to buy a big boat when you retire. You anticipate needing $130,000 to buy the boat when you retire in 20 years. a. You have an investment option you believe will return 5.1% interest (annual rate), compounded quarterly (4 times per year). How much do you need to invest today to be able to buy the boat when you retire? b. Suppose you invest the amount from part (a), but the investment actually returns 6% interest. How much money will you have left over after buying your boat when you retire? C. If you had known the investment would return 6% interest, how much would you have needed to invest at the beginning to cover the full $130,000
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