A find the future value of rens deposit assuming that

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Unformatted text preview: . (2) $150 is deposited semiannually and the credit union pays interest semiannually. (3) $75 is deposited quarterly and the credit union pays interest quarterly. b. Use your finding in part a to discuss the effect of more frequent deposits and compounding of interest on the future value of an annuity. 4–38 Deposits to accumulate future sums For each of the cases shown in the following table, determine the amount of the equal annual end-of-year deposits necessary to accumulate the given sum at the end of the specified period, assuming the stated annual interest rate. Case Sum to be accumulated Accumulation period (years) Interest rate A B $ 5,000 3 12% 100,000 20 7 C 30,000 8 10 D 15,000 12 8 LG6 Creating a retirement fund To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate $220,000 by the end of 42 years from today. You plan to make equal annual end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $220,000 fund by the end of 42 year...
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