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An investor wants to have $140,000 available at the end of 12 years. This investor plans to make 12 equal year payments into an investment
An investor wants to have $140,000 available at the end of 12 years. This investor plans to make 12 equal year payments into an investment that is expected to earn an 8 percent annual rate of return. If the required amount of each year payment is:
at the end of each year
at the beginning of each year
When the year payment will be lower and why? Justify your answer
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