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Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today). a.How much
- Mrs. Beach wants to invest a lump sum of money today to have $100,000 when she retires at 65 (she is 40 today).
a.How much of a deposit would she have to make if the interest rate on the C.D. was 5%?
- What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.
- What would Mrs. Beach have to deposit if she were to use common stock and earned an average rate of return of 11%.
- What type of a problem is this? ___________
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