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please solve & explain solution You have a loan outstanding. It requires making seven annual payments of $7,000 each at the end of the next
please solve & explain solution
You have a loan outstanding. It requires making seven annual payments of $7,000 each at the end of the next seven years. Your bank has offered to allow you to skip making the next six payments in lieu of making one large payment at the end of the loan's term in seven years. If the interest rate on the loan is 9%, what final payment wil the bank require you to make so that it is indifferent to the two forms of payment? The final payment the bank will require you to make is $. (Round to the nearest dollat.) You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 65. Today is your 34th birthday, and you decide starting today and continuing on every birthday up to and including your 65th birthday that you will put the same amount into a savings account. If the interest rate is 10%, how much must you set aside each year to make sure that you will have $1 million in the account on your 65th birthday? The amount to deposit each year is $9073 (Round to the nearest dollar) Step by Step Solution
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