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Please help solve Suppose you have an opportunity to invest in a fund that pays 12% interest compounded annually. Today, you invest $10,000 into this
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Suppose you have an opportunity to invest in a fund that pays 12% interest compounded annually. Today, you invest $10,000 into this fund, Three years later (EOY 3 ). you borrow $5,000 from a local bant: at 105 anncal thterest and irwest it in the fund. Two years biter (EOY 5 ). you withdraw enough money from the fund to repay the bankloan and all interest due on it. Three years from this withdrawal (EOY B) you start taking $2,000 per year out of the fund. After five withdrawals of $2,000, you have withdrawn your original 510,000 . The amount remaining in the fund is earned interest. The amount remain gin in the fund is 5 (Round to the nearest dollar) Step by Step Solution
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