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PLEASE SHOW WORK Assignment 05-Time Value of Money Due on Oct 18 at 11:59 PM EDT Consider the case of the following annuities, and the
PLEASE SHOW WORK
Assignment 05-Time Value of Money Due on Oct 18 at 11:59 PM EDT Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Ethan needed money for some unexpected expenses, so he borrowed $4,719.26 from a friend and agreed to repay the loan in eight equal installments of $950 at the end of each year. The agreement is offering an implied interest rate of 12.00% Ethan's friend, Samuel, has hired a financial planner for advice on retirement. Considering Samuel's current expenses and expected future lifestyle changes, the financial planner has stated that once Samuel crosses a threshold of $4,110,508 in savings, he will have enough money for retirement. Samuel has nothing saved for his retirement yet, so he plans to start depositing $70,000 in a retirement fund at a fixed rate of 12.00% at the end of each year. It will take years for Samuel to reach his retirement goalStep by Step Solution
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