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Will Avery is considering two different savings plans. The first plan would have him deposit $700 every six months, and he would receive interest
Will Avery is considering two different savings plans. The first plan would have him deposit $700 every six months, and he would receive interest at a 10% annual rate, compounded semiannually. Under the second plan, Will would deposit $1,400 every year with a rate of interest of 10.5% compounded annually. The initial deposit with the first plan would be made six months from now while the initial deposit with the second plan would be made one year from now. What is the future (terminal) value of the first plan at the end of 20 years? What is the future (terminal) value of the second plan at the end of 20 years?
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