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You are 40 now and at age 60 you wish to buy a 20 year annuity that makes monthly payments of $3,500 which earns a

You are 40 now and at age 60 you wish to buy a 20 year annuity that makes monthly payments of $3,500 which earns a rate of 1% per

month.

a. You have $15,000 to invest now to save up and buy that annuity. Would annual interest rate would you need to earn to achieve

your goal?

b.How many periods will it take money to double at rate of 10% per period (rounded to the nearest period)?

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