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4. What is the present value of annual payments of $10,000 for a period of 10 years if the first payment is made 4 years
4. What is the present value of annual payments of $10,000 for a period of 10 years if the first payment is made 4 years from now? Assume an interest rate of 5%. $66,703.2 5. You are preparing to buy a vacation home five years from now. The home will cost $100000 at that time. You plan on saving three deposits at an interest rate of 10%: Deposit 1: Deposit $12000 today. Deposit 2: Deposit $15000 two years from now. Deposit 3: Deposit $ X three years from now. How much do you need to invest in year three to ensure that you have the necessary funds to buy the vacation home at the end of year five? $50,172.6
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