Question
Lisa Simpson wants to have $1,100,000 in 45 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 11.50 percent annually. What must
Lisa Simpson wants to have $1,100,000 in 45 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 11.50 percent annually. What must Lisa's annual deposit be?
Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $10,504.04 that will pay them $1,000 per year for 20 years. They don't have the slightest idea what return they would be making on their investment of $10,504.04. What rate of return would they be earning?
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