A 136049 b 146933 c 121551 d 127628 e

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Unformatted text preview: ffective annual interest rate is 8%. At the beginning of year 5, you take all the money out of the account to buy a new TV. How much money can you spend? a) $1,360.49 b) $1,469.33 c) $1,215.51 d) $1,276.28 e) $1,360.50 Answer: a) $1,360.49 Example: The Manhattan Purchase - Native Americans allegedly sold Manhattan to the British for $24 in 1626. – Had they invested this money at an annual rate of return of 7.2%, what w...
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