Chapter 2 Homework

Chapter 2 Homework - $212,000: $212,000 = $9,824.8216...

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Kristen Porter 1/23/12 Chapter 2 # 8, 12 8. a. 8%: $10,000 X 2.159 = $21,590.00 5%: $10,000 X 1.620 = $16,290.00 b. $25,000 X 5.5690 = $139,225 c. $210,000 X 1.629 = $342, 090 d. $70,000 X 2.079 = $145,530 There will not be enough money to pay for my child’s four year education if I invest $70,000 today for 15 years at 5%. I would have to save the following amount each year to meet my goal of
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Unformatted text preview: $212,000: $212,000 = $9,824.8216 21.578 e. $1,000,000 = $11,071.9901 90.318 f. $750,000 = $70,257.6112 10.675 12. Amy can reasonably expect her investment to be worth $73,560 in 20 years if she invests $2,000 each year with a return of 6% per year. The following calculation demonstrates this: $2,000 X 36.780 = $73, 560...
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