Arnie agrees to contribute $2,300 to the road fund at the end of each year for the next 12 years. Jack wants to match Arnie's contribution, but he wants to make a lump-sum contribution today. If the current interest rate is 3.5% compounded annually, how much should Jack deposit to equal Arnie's annual deposits? (Round your answer to the nearest cent.)

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Q: which is the better option and by how​ much?

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A: Excel Spreadsheet:

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A: Here,

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A: Given: Future value of annuity = $71,000 Interest = 2.4%

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A: Computation:

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A: The computation is as follows:

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A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = $75000 P =…

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A:

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A: Annuity is the number of payments made by a person at frequent intervals of time. Annuities are used…

Q: Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: This is a case of ordinary annuity. It means that deposits are being made at the end of the relevant…