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NNADVOKAT [17]
3 years ago
11

To save for retirement, Jamie decides to invest in an annuity that pays 5% annual interest, compounded annually. If Jamie contri

butes $2,000 annually for 20 years, how much interest would she earn during the 20 years?
Business
1 answer:
tatyana61 [14]3 years ago
6 0

Answer:

Interest= $26,131.91

Explanation:

Giving the following information:

Annual deposit= $2,000

Number of periods= 20 years

Interest rate= 5%

<u>First, we need to calculate the future value using the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,000*[(1.05^20) - 1]} / 0.05

FV= $66,131.91

<u>Now, we can determine the interest earned:</u>

Interest= future value - total investment

Interest= 66,131.91 - 20*2,000

Interest= $26,131.91

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Kent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The D
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The answer and procedures of the exercise are attached in the following archives.

Explanation  

As per §117(b)(2) a qualified scholarship that is solely used for qualified tuition and related expenses like fees, books and supplies that is necessary for such course in which admission is taken, related tuition fees and associated expenses are not taxable.

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6 0
3 years ago
Arrange the types of investments in the correct order from the least risky to the most risky investment.
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3 years ago
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The steps in the planning process of an organization include:

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Learn more about the planning function at brainly.com/question/3504046

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