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What is the amount of the payments that karla

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(Various Time Value of Money Situations) Using a financial calculator, provide a solution to each of the following questions.

(a) What is the amount of the payments that Karla Zehms must make at the end of each of 8 years to accumulate a fund of $70,000 by the end of the eighth year, if the fund earns 7.25% interest, compounded annually?

(b) Bill Yawn is 40 years old today, and he wishes to accumulate $500,000 by his sixty-fifth birthday so he can retire to his summer place on Lake Winnebago. He wishes to accumulate this amount by making equal deposits on his fortieth through sixty-fourth birthdays. What annual deposit must Bill make if the fund will earn 9.65% interest compounded annually?

(c) Jane Mayer has a $26,000 debt that she wishes to repay 4 years from today. She has $17,000 that she intends to invest for the 4 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt? 

Reference no: EM131105610

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