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help asap! Please and Ty (Future value of an annuity) Upon graduating from college 40 years ago, Dr Nick Riviera was already planning for his
help asap! Please and Ty
(Future value of an annuity) Upon graduating from college 40 years ago, Dr Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a monthly basis in the amount of S150 Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 12 percent compounded monthly Use five decimal places for the periodic Interest rate in your calculations a. How much has Nick accumulated in his retirement account? b. In addition to this 20 years ago Nick received an inheritance check for $30,000 from his beloved uncle Ho decided to deposit the entire amount into his retirement fund. What is his current balance in the fund? a. The amount Nick has accumulated in his retirement account is $ (Round to the nearest cent.) Comprehensive problem) You would like to have $74,000 in 12 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will eam 6 percent interest compounded annually Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be? (Assume you can earn 6 percent on this deposit) c. At the end of year 5, you will receive $20,000 and deposit it in the bank in an effort to reach your goal of $74,000 at the end of year 12 In addition to the lump sum deposit, how much must you invest in 12 equal annual deposits to reach your goal? (Again, assume you can earn 6 percent on this deposit) # How much must you deposit annually to accumulate this amount? (Round to the nearest cent) Step by Step Solution
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