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What will be the value of this investment

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Question - Grace turned 25 years old today and would like to retire by the time of her 60th birthday. In addition to social security and her company pension plan, she plans to invest $3,000 annually into an investment that promises to return 9 percent annually. If her first $3,000 payment is on her 26th birthday and her last $3,000 payment is on her 60th birthday, what will be the value of this investment on her 60th birthday?

Andy wants to take out a loan to purchase a new home. He is willing to pay up to 10,000 at the end of each of the next 30 years to repay the loan. If the loan interest rate is 6 percent, what is the most he can borrow?

Reference no: EM132837330

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