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Two sisters each open IRAs in 2011 and plan to invest $4,000 per month for the next 10 years. Mary makes her first deposit on
Two sisters each open IRAs in 2011 and plan to invest $4,000 per month for the next 10 years. Mary makes her first deposit on January 1, 2011 and will make all future deposits on the first day of the month. Jane makes her first deposit on December 31, 2011 and will continue to make her annual deposits on the last day of each month. At the end of 10 years, the difference in the value of the IRAs (rounded to the nearest dollar), assuming an interest rate of 7% per year, will be: Hint: since the payment is made per month change "N" and I/Y" on a month basis O $19.837. O $12,456. O $5,300. $4038.65. Auto Loans R Them loans you $34,000 for five years to buy a car. The loan must be repaid in 60 equal monthly payments. The annual interest rate on the loan is 8 percent. What is the monthly payment? O $500.92 O $643.79 O $689.40 O $597.24 What is the value on 1/1/13 of the following cash flows: Date Cash Received Amount of Cash 1/1/14 $15,000 1/1/15 $20,000 1/1/16 $40,000 1/1/17 $43,000 1/1/18 $57,000 Use a 5% discount rate. O $153,270 O $147,017 O $156,250 O $107.330
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