a.
To Determine: The value of fund when retired after 20 years.
Introduction: Present value is otherwise called discounted value, is a budgetary estimate that the value of a future cash flow of payments in the present dollars balanced for inflation and interest. As such, it evaluates the purchasing intensity of one future dollar to buying intensity of a cash flow today.
b.
To Determine: The amount required today as a single amount to provide the fund calculated in part a.
c.
To Determine: The result if a increase in rate that is earned during and preceding to retirement using the values found in parts a and b.
d.
To Determine: The amount of annual deposits to be.
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