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You can afford to save $1000 per month at a monthly interest rate of r = .007.You save for 10 years (= 120 months), using
You can afford to save $1000 per month at a monthly interest rate of r = .007.You save for 10 years (= 120 months), using your savings to fund an annuity. You will draw down the annuity over a period of 25 years (= 300 months) when the interest rate rate is r = .006. What will be your annuity's monthly payment to you?
a. | $1346.25 | |
b. | $1671.08 | |
c. | $2019.58 | |
d. | $2238.43 |
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