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Consider two annuities that both will have 20 deposits of $500 into a savings account that both earn k% compounded quarterly. Annuity A has payments
Consider two annuities that both will have 20 deposits of $500 into a savings account that both earn k% compounded quarterly. Annuity A has payments start one quarter from today and annuity B has payments start today (annuity due). (a) How much will each annuity be worth in 5 years? (b) How much interest will both annuities earn? (c) How much extra will you earn with the annuity due?
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