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a . The Betzes have leased an auto for 2 years at $ 4 5 0 / month . If money is worth 3 .
a The Betzes have leased an auto for years at $month If money is worth year compounded
monthly, what is the equivalent cash payment present value of this annuity? ANSWER: $
b Suppose that Ramos contributes $ per year into a traditional IRA earning interest at the rate of
compounded annually, every year after age until his retirement at age At the same time every
year, his wife Vanessa deposits $the amount after paying taxes at the rate of into a Roth
IRA earning interest at the same rate as the investment of Ramos. Suppose that Ramos withdraws his
investment upon retirement at age and that his investment is then taxed at
a How much will Ramos investment be worth after taxes at that time? ANSWER: $
b How much will Vanessa investment be worth at that time? ANSWER: $
Show all work and answer both questions
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