Question
2a: Find the future value of $3,600 paid at the end of each year for 20 years at 9 percent. (Round off to the nearest
2a: Find the future value of $3,600 paid at the end of each year for 20 years at 9 percent. (Round off to the nearest cent.)
2b:Find the present value of $200 paid at the end of each year for five years at 5 percent. (Round off to the nearest cent.)
2c: If the cash flows in the previous question were an annuity due, what would be their present value? (Round off to the nearest cent.)
2d: Suppose you have 30 years until you retire. You believe you can earn an annual return of 9 percent by investing in the stock market. If so, how much would you need to invest at the end of each year in order to have $1 million by the time you retire? (Solve for the annual payment.) (Round your answer out to the nearest cent.)
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