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monthly cash payments of $1,500 for 10 years with the first payment sct of benefit. Assume an interest rate of 6% Required What is the

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monthly cash payments of $1,500 for 10 years with the first payment sct of benefit. Assume an interest rate of 6% Required What is the value of the deferred annuity as of today? Assume 1 Julie has $25,000 in a fund that earns 10% annual compound interest. If she desires to withdraw it in five annual compounding during the deferral period. equal annual amounts, starting today (at beginning of period), how much would she receive each year? Jules deposits $250 each semiannual period starting today (at beginning of period); this account earns 3% (annual rate). What is the balance in the account at the end of year 10? 2. 3. Jill purchases a new automobile that cost $14,000. She receives a $4,000 trade-in allowance for her old auto and signs an 8% note for $10,000. The note requires eight equal quarterly payments starting at the end of the first quarter from date of purchase. What is the amount of each payment? June deposits $2,000 at the end of each year in an investment account for five years at compound interest. The fund has a balance of $12,456 at the date of the last deposit. What rate of interest did she earn? On January 1, Jin owed a debt of $15,130. An agreement was reached that she would pay the debt plus com- pound interest in 24 monthly installments of $700, the first payment to be made at the end of January. What rate of annual interest is she paying? 4. 5. Oliver Inc. plans to establish a debt retirement fund, beginning December 31,2020. Contributions of $20,000 are made to a trustee annually, beginning December 31,2020, so that the desired amount of $90,120 is avail- able in four years, the date of the last payment.Compute the required interest rate that must be earned by the fund on an annual basis to satisfy these requirements. 1

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