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You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55 , you have
You would like to start saving for retirement. Assuming you are now 25 years old and want to retire at age 55 , you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 10% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 at the end of each year for the next 30 years. Required: Calculate how much your accumulated investment is expected to be in 30 years. Note: Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places. ( FV of $1, PV of $1, FVA of $1, and PVA of \$1) Table 1 Future value of $1 TABLE 2 Present value of $1 Table 3 Future Value of an Ordinary Annuity of $1 EVA (11+i)n1)/i Table 4 Present Value of an Ordinary Annuity of $1
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