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You have borrowed $20,000 at a compound annual interest rate of 12%. You feel that you will be able to make annual payments of $4,000
You have borrowed $20,000 at a compound annual interest rate of 12%. You feel that you will be able to make annual payments of $4,000 per year on your loan. How long will it be before the loan is entirely paid off? 8.09 years 9.92 years 5.00 years Never Earl E. Bird has decided to start saving for his retirement. Beginning on his twenty-first birthday, Earl plans to invest $3,000 each birthday into a saving investment earning a 5% compound annual rate of interest. He will continue this savings program for a total of 10 years and then stop making payments. But his savings will continue to compound at 5% for 35 more years, until Earl retires at age 65. How much will Earl's savings programs be worth at the retirement age of 65 ? $208,139.55 $235,094.57 $165,480.46 $442,537.30
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