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Lincoln Benefit Life offered an annuity that pays 5% compounded annually. A person plans to make equal annual deposits into this account for 25 years
Lincoln Benefit Life offered an annuity that pays 5% compounded annually. A person plans to make equal annual deposits into this account for 25 years and than make 20 equal annual withdrawals of $60,000 reducing the balance in the account to zero.
A) How much must be deposited annually to accumulate significant funds to provide for those payments?
B) How much total interest is earned during the entire 45-year process?
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