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3. If P dollars are invested annually in an annuity (investment fund), after n years, the annuity will be worth (1 + i) 1 W

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3. If P dollars are invested annually in an annuity (investment fund), after n years, the annuity will be worth (1 + i)" 1 W P i where i is the interest rate, compounded annually Suppose that you establish an annuity that carns 7% interest, and you want it to be worth $50,000 in 20 yr. How much will you need to invest annually to achieve this goal

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