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You are given two options to invest $20000. The first one is through a fund earning an annual effective rate or return i. The second
You are given two options to invest $20000. The first one is through a fund earning an annual effective rate or return i. The second option is through purchasing an annuity-immediate with 24 level annual payments at an annual effective rate of 10%. The payments are deposited into a fund earning an annual effective rate of 5%. Both options produce the same accumulated value at the end of 24 years. Calculate i.
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