Make the deposit today as opposed to waiting

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1. An investment offers $4300 per year for 17 years, with the first payment occurring 1 year from now. If the required return is 15 percent, what is the value of the investment?

2. You plan to retire in 26 years. You are debating whether to deposit $46000 into an account earning 9 percent annually today or waiting 14 years before making the deposit. How much more will be in the account when you retire in 26 years if you make the deposit today as opposed to waiting 14 years to make the first deposit?

Reference no: EM131985432

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