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EXAMPLE: If you invest $1200 every year (P = 1200) for 3 years (t=3) at an interest rate of 5% (r = 0.05)
compounded weekly (n = 52), then the ?rst year’s investment of $1200 would earn interest for 3 years. but
then the next year. the next investment of $1200 would only earn interest for 2 yearsI and th… Show more
compounded weekly (n = 52), then the ?rst year’s investment of $1200 would earn interest for 3 years. but
then the next year. the next investment of $1200 would only earn interest for 2 yearsI and th… Show more
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j. How much would you need to start investing each year, beginning right now, to accumulate this amount?
A “short-cut” to doing this is to ?rst compute the effective yield at your retirement age, then divide this
amount into Part (i). This is the amount you well need to invest each year. (5 points) k. That … Show more
A “short-cut” to doing this is to ?rst compute the effective yield at your retirement age, then divide this
amount into Part (i). This is the amount you well need to invest each year. (5 points) k. That … Show more
