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Case Studies (40%) (L01 to LO5) 1. Fred is investing 10K in a bank that offers 5 % compounded monthly. He takes the money after

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Case Studies (40%) (L01 to LO5) 1. Fred is investing 10K in a bank that offers 5 % compounded monthly. He takes the money after 2 years and invests in Fund 'A' that offers yearly payments at 4 % over 29 years compounded annually. Fred has the option to take the yearly payments from Fund A and invest in Fund B, and wait until he collects the money after 24 years compounded annually at 4.1% or invests in Fund C compounds offers 4.12% for the same duration. Fred has the option to stay with Fund A as well. Please advise Fred on his Investment decision. 1. You plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon reaching retirement age to withdraw $180,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (60 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 13% per year on your deposits. However, you only expect to earn 5% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal

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