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(Future value of an annuity) In 7 years you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking
(Future value of an annuity) In 7 years you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $140,000 and is expected to increase in value each year at a rate of 5 percent. Assuming you can earn 8 percent annually on your investments, how much must you invest at the end of each of the next 7 years to be able to buy your dream home when you retire? a. If the house you are looking at currently costs $140,000 and is expected to increase in value each year at a rate of 5 percent, what will the value of the house be when you retire in 7 years? (Round to the nearest cent.) b. Assuming you can earn 8 percent annually on your investments, how much must you invest at the end of each of the next 7 years to be able to buy your dream home when you retire? (Round to the nearest cent.) Enter your answer in each of the answer boxes
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