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Newman Bogut just received a signing bonus of $942,900. His plan is to invest this payment in a fund that will earn 12%, compounded annually.
Newman Bogut just received a signing bonus of $942,900. His plan is to invest this payment in a fund that will earn 12%, compounded annually. (a) If Bogut plans to establish the AB Foundation once the fund grows to $3,279,925, how many years until he can establish the foundation? (b) Instead of investing the entire $942,900, Bogut invests $287,300 today and plans to make 11 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $3,279,925 foundation at the end of 11 years
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