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Ail employee of a company wants to accumulate $1,000,000 to be able to retire. The employee wants to deposit money on a regular basis into
Ail employee of a company wants to accumulate $1,000,000 to be able to retire. The employee wants to deposit money on a regular basis into their investment account. (a) Suppose the employee deposits $5,000 at the end of each year into their investment account. With annual compounding|, what annual percentage rate will need to be earned for the employee to be able to retire in 25 years after opening their account? (b) Assume the employee deposits $100,000 at the beginning of the first year into their investment account and deposits $5,000 at the end of each year. With annual compounding, what annual percentage rate will need to be earned for the employee to be able to retire 25 years after opening their account? (c) If the employee deposits $5,000 at the end of each year into their investment account, how long would it take for the employee to accumulate $1,000,000 to be able to retire assuming an interest rate of 10% per annum with monthly compounding
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