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I. If the interest rate is 10% per year, what series of equal annual payments is equivalent to the following series of decreasing payments: $5,000,

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I. If the interest rate is 10% per year, what series of equal annual payments is equivalent to the following series of decreasing payments: $5,000, $4,000, $3,000, S2,000, and $1,000? A. $3,000 B. $3,000(1+0.1) 5 S3,300 C. [$5,000(F/P, 10%,4)+54,000(F/P, 1 D. $5,000-$1,000(AG, 10%,5) 0%,3) + $3,000(F/P, 10%,2) + $2,000(F/P, 10%, 1) + 1,000)/5 0,000 is deposited in a fund that pays 5% annual compound interest for 2 years 3% annual compound d 4% annual compound interest for 2 years. If uniform annual withdrawals occur over interest for 2 years, an the 6-y ear period, what will be the magnitude of the annual withdrawals? A. $27,689.63 C. $28,804.50 B. $28,614.29 D. $29,552.62 3. If you want to triple your money at an interest rate of6% per year com-pounded annually, or how many years would you have to leave the money in the account? A. 12 years B. 32 years C. 19 years D. Cannot be determined without knowing the amount invested 4. Your company seeks to take over Good Deal Company. Your company's offer for Good Deal is S3,000,000 in cash upon signing the agreement followed by 10 annual payments of $300,000 starting one year later. The time value of money is 10%. What is the present worth of your company's offer? A. $3,000,000 C. $4,843,380 B. $2,281,830 D. $5,281,830

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