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You deposit $ 1 0 , 0 0 0 annually into a life insurance fund for the next 1 0 years, after which time you
You deposit $ annually into a life insurance fund for the next years, after which time you plan to retire.
a If the deposits are made at the beginning of the year and earn an interest rate of percent, what will be the amount in the
retirement fund at the end of year
b Instead of a lump sum, you wish to receive annuities for the next years years through What is the constant annual
payment you expect to receive at the beginning of each year if you assume an interest rate of percent during the distribution period?
c Repeat parts a and b above assuming earning rates of percent and percent during the deposit period and earning rates of
percent and percent during the distribution period.
Complete this question by entering your answers in the tabs below.
Req A and
Repeat parts a and b above assuming earning rates of percent and percent during the deposit period and earning rates
of percent and percent during the distribution period. Do not round intermediate calculations. Round your answers to
decimal places. eg
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