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PROBLEMS (Show complete work and timelines to receive partial credit for incorrect answers): 1. You deposit $2,000, $3,000, and $4,000 respectively at the end of

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PROBLEMS (Show complete work and timelines to receive partial credit for incorrect answers): 1. You deposit $2,000, $3,000, and $4,000 respectively at the end of years 1, 2 and 3 from today in a mutual fund providing 10% return How much your savings will be worth in 3 years. (5) 2. Aunt Zelda's son starts college in 5 years for which she will need $15,000 payable at the end of each of the 4 years. Suppose she can buy an annuity in 5 yrs that will enable her to make the four $15,000 annual payments Draw a timeline for all cash flows. What will be the cost of the annuity 5 years from today? What is the most she should be willing to pay for it if purchased today? Assume an interest (discount) rate of 6% during these 9 years. (5+5)

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