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A) How much must be deposited today into an account offering 108 compounded annually in order to accumulate exactly enough to withdraw $2,000 per year
A) How much must be deposited today into an account offering 108 compounded annually in order to accumulate exactly enough to withdraw $2,000 per year at the end of years 3, 4, 5, and 6?
B) If $2,000 are deposited into the account in part (A) at the end of years 3, 4, 5, and 6, what will be the balance at the end of year 10?
C.) Find the present value of $13,589.7762 to be received 10 years from today if r = 10% compounded annually. [Do you see a connection between parts A ,B, and C?]
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