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Annuities and compounding Personal Finance Problem Janet Boyle intends to deposit $ 2 8 0 per year in a credit union for the next 1
Annuities and compounding Personal Finance Problem Janet Boyle
intends to deposit $ per year in a credit union for the next years, and
the credit union pays an annual interest rate of
a Determine the future value that Janet will have in years, given
that endofperiod deposits are made and no interest is withdrawn, if
$ is deposited annually and the credit union pays interest annually.
$ is deposited semiannually and the credit union pays interest
semiannually.
$ is deposited quarterly and the credit union pays interest quarterly.
b Use your finding in part a to discuss the effect of more frequent deposits
and compounding of interest on the future value of an annuity.
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