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Q1: Annual payments of 500 are made at the beginning of each year for 30 years to an annuity earning an annual effective rate of
Q1: Annual payments of 500 are made at the beginning of each year for 30 years to an annuity earning an annual effective rate of 7%. The interest is immediately reinvested into another fund earning 4.5% annual effective interest. At the end of 30 years, what is accumulated value of the 30 payments and the reinvested interest? (a) 36, 325 (b) 47, 230 (c) 26, 300 (d)30,504(e) 41,252
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