Question
Suppose you are an investor and you need to have $100,000 in your account at the end of 15 years so you have decided to
Suppose you are an investor and you need to have $100,000 in your account at the end of 15 years so you have decided to save a certain amount at the end of each of the next 15 years and deposit it in AIB bank. The bank pays 12 percent interest compounded annually for long-term deposits. How much will you have to save each year to achieve your target of $100,000? b. Suppose you have inherited $45,000 and wishes to purchase an annuity that will provide you with a steady income over the next 12 years. You have heard that the local savings and loan association is currently paying 10% compound interest on an annual basis. If you were to deposit your funds, what year-end equal-dollar amount would you be able to withdraw annually such that you would have a zero balance after last withdrawal 12 years from now?
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