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Jina is planning for retirement. She deposits $950 at the end of each year in an ordinary annuity that pays 6% interest, compounded annually. Answer
Jina is planning for retirement. She deposits $950 at the end of each year in an ordinary annuity that pays 6% interest, compounded annually. Answer each part. Do not round any intermediate computations nor answers. If necessary, refer to the list of financial formulas. (a) Find the total value of the annuity at the end of the 1St year. x S Q $ll] (b) Find the total value of the annuity at the end of the 2nd year. $D (c) Find the total value of the annuity at the end of the 3rd year. $D IZPrt 11! F n A:P(1+rt) A:P(1+ A:PJ' P: principal 1: simple interest r : annual interest rate 2': time or term of investment or loan (in years) A : future value or amount accumulated in : number of times interest is compounded per year 2 : Euler's number M: installment payment or monthly payment Y: effective annual interest rate or effective annual yield
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