(Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,700,000 in 30 years by...

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(Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,700,000 in 30 years by making equal annual end-o

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Answer 1

Answer #1

Future value = Annuity * [(1 + r)ⁿ - 1] / r

1,700,000 = Annuity * [(1 + 0.085)³⁰ - 1] / 0.085

1,700,000 = Annuity * 124.214725

Annuity = $13,685.98

Annual deposit must be $13,685.98

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Answer 2

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