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4. Today you are opening a savings account and depositing an initial $1,000 into it. You plan to deposit $4,000 into the account one year
4. Today you are opening a savings account and depositing an initial $1,000 into it. You plan to deposit $4,000 into the account one year from today and deposit another $4,000 two years from today. How much will you have in your account ten years from today if you earn an 8 percent rate of return? a. $6,008.85 b. $12,220.96 c. $17,558.66 d. $19,430.32 5. What is the effective annual rate of 14.5 percent compounded semiannually? a. 15.03 percent b. 15.31 percent c. 15.50 percent d. 15.82 percent 6. You just purchased a 15-year annuity at a cost of $70,000. The annuity will pay you $1,050 at the end of each month, starting with this month. What rate of return are you earning on this investment? a. 15.42 percent b. 15.52 percent c. 16.45 percent d. 16.74 percent 7. You want to receive $4,000 per month for the next 5 years. How much would you need to deposit today if you can earn 0.5% per month? a. 206,902 b. 15.52 percent c. 16.45 percent d. 279080
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