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Viviana Carroll needs to have $25,000 in five years. If she can earn 7 percent on any investment, what is the amount that she
Viviana Carroll needs to have $25,000 in five years. If she can earn 7 percent on any investment, what is the amount that she will have to invest every year at the end of each year for the next five years? (Round to the nearest dollar.) Bryant Investments is putting out a new product. The product will pay out $32,450 in the first year, and after that the payouts will grow by an annual rate of 2.75 percent forever. If you can invest the cash flows at 7.25 percent, how much will you be willing to pay for this perpetuity? (Round to the nearest dollar.) Albend Holmes wants to deposit $4,500 in a bank account that pays 5 percent annually. How many years will it take for his investment to grow to $10,000? (Round off to the nearest year.)
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