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Suppose you have an opportunity to invest in a fund that pays 1 3 % interest compounded annually. Today, you invest $ 5 comma 0
Suppose you have an opportunity to invest in a fund that pays interest compounded annually. Today, you invest
$ comma into this fund. Three years laterEOY you borrow $ comma from a local bank at annual interest and invest it in the fund. Two years laterEOY you withdraw enough money from the fund to repay the bank loan and all interest due on it Three years from this withdrawalEOY you start taking $ comma per year out of the fund. After five withdrawals of $ comma you have withdrawn your original $ comma The amount remaining in the fund is earned interest. How much remains?
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