Contribute an equal amount on a yearly basis.

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Suppose you will need $50,000 in 4 years to start up a new business you have planned. With a 5% real interest rate, how much do you have to invest now in order to achieve this goal?

Repeat Problem #3, but assume you can contribute an equal amount on a yearly basis. How much would you need to put into the account each year?

Reference no: EM13927604

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