Calculate the present value of an ordinary annuity

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Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12 percent on his contributions, how much will he have at the end of the twentieth year?

B. Calculate the present value of an ordinary annuity of $350 each year for five years, assuming an opportunity cost of 4 percent.

Reference no: EM13762176

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