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Chapter 5 Time Value of Money 1-Calculate the future value of a $2,000 annuity due deposited at 8 percent compounded annually for each of the

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Chapter 5 Time Value of Money 1-Calculate the future value of a $2,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years? 2- Suppose you want to save money for your child's college expenses. Let's suppose you deposit $1000 at the beginning of each year, for 18 years, at an interest rate of 5%. How much is available for your child when he/she start school? 3- Compute the present value of an ordinary annuity of $350 each year for five years, assuming an opportunity cost of 4 percent? 4-Fahad wants to invest a sum of money into account that pays 8% interest compounded annually so that every year for 5 years he can withdraw $500? 5-You want to buy an ordinary annuity that will pay you $4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time period. The maximum price you would be willing to pay for the annuity is closest to 6-What the future value of a$4000 annuity due deposited at 6% compounded annually for each of the next 8 years? 7- Calculate the present value of an ordinary annuity of a $2000 each year for seven years, deposited at 5%

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