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Please help with this question and explain step by step thank you. Consider the case of the following annuities, and the need to compute either
Please help with this question and explain step by step thank you.
Consider the case of the following annuities, and the need to compute either their expected rate of return or duration Matthew inherited an annuity worth $4,934.51 from his uncle. The annuity will pay him six equal payments of $1,100 at the end of each year. The annuity fund is offering a return of Matthew's friend, Aaron, wants to go to business school. While his father will share some of the expenses, Aaron still needs to put in the rest on his own. But Aaron has no money saved for it yet. According to his calculations, it will cost him $14,467 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4,500 at the end of every year in a mutual fund, from which he expects to earn a fixed 7% rate of return It wil take approximately years for Aaron to save enough money to go to business schoolStep by Step Solution
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