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Baba Lou plans to retire in 20 years. At that point he plans to collect payments at the end of every six months that are
Baba Lou plans to retire in 20 years. At that point he plans to collect payments at the end of every six months that are 2% larger than the previous payment and this is to continue for 30 years. The first payment will be $16,500. His retirement plan is expected to earn 7% compounded semi-annually after he retires and 10% compounded annually before he retires. What single investment should he make now to fund the whole retirement plan? Multiple Choice $241,917 $316,443 $68,590 $641,877 $95,411 Baba Lou plans to retire in 20 years. At that point he plans to collect payments at the end of every six months that are 2% larger than the previous payment and this is to continue for 30 years. The first payment will be $16,500. His retirement plan is expected to earn 7% compounded semi-annually after he retires and 10% compounded annually before he retires. What single investment should he make now to fund the whole retirement plan? Multiple Choice $241,917 $316,443 $68,590 $641,877 $95,411
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