Dick Eckel recently set up a TDA to save for his retirement. He arranged to have $135 taken out of each of his biweekly checks; it will earn 9 7 8% interest. He just had his twenty-ninth birthday, and his ordinary annuity comes to term when he is 65. (Round your answers to the nearest cent.) (a) Find the present value of the given annuity. $ (b) Interpret the present value of the given annuity. You would have to invest a lump sum of $ now instead of $135 biweekly.
Dick Eckel recently set up a TDA to save for his retirement. He arranged to have $135 taken out of each of his biweekly checks; it will earn 9 7 8% interest. He just had his twenty-ninth birthday, and his ordinary annuity comes to term when he is 65. (Round your answers to the nearest cent.) (a) Find the present value of the given annuity. $ (b) Interpret the present value of the given annuity. You would have to invest a lump sum of $ now instead of $135 biweekly.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
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Dick Eckel recently set up a TDA to save for his retirement. He arranged to have $135 taken out of each of his biweekly checks; it will earn
9
%
7 |
8 |
interest. He just had his twenty-ninth birthday, and his ordinary
(a) Find the present value of the given annuity.
$
(b) Interpret the present value of the given annuity.
$
(b) Interpret the present value of the given annuity.
You would have to invest a lump sum of $ now instead of $135 biweekly.
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