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Calculating Annuity Values [101] If you deposit $4,000 at the end of each of the next 20 years into an account paying 11.2 percent interest,
Calculating Annuity Values [101] If you deposit $4,000 at the end of each of the next 20 years into an account paying 11.2 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years? Calculating Annuity Values (L01) You want to have $90,000 in your savings account 10 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.8 percent interest, what amount must you deposit each year? Calculating Annuity Values [LO2] Dinero Bank offers you a $50,000, seven-year term loan at 7.5 percent annual interest. What will your annual loan payment be? 10. Calculating Perpetuity Values [LO1] The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. If the required return on this investment is 7.2 percent, how much will you pay for the policy? Calculating Perpetuity Values (L-Q1] In the previous problem, suppose a sales associate told you the policy costs $375,000. At what interest rate would this be a fair deal
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