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Problem 11

Find the periodic payments necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits.) [HINT: See Quick Example 2.] \(\$ \$ 20,000\) in a fund paying \(5 \%\) per year, with monthly payments for 5 years, if the fund contains \(\$ 10,000\) at the start

Expert verified

To accumulate \$20,000 in the annuity account with a starting balance of \$10,000, periodic payments of approximately \$147.13 are necessary for the next 5 years, with monthly deposits and compounding interest at the same intervals.

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Chapter 2

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Chapter 2

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Chapter 2

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Chapter 2

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Chapter 2

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