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9 August, 15:03

Daphne invests $5,800 in a savings account at the beginning of each of the next fifteen years. If his opportunity cost rate is 6 percent compounded annually, how much will her investment be worth after the last annuity payment is made

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  1. 9 August, 18:12
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    The answer is $135,000

    Explanation:

    FV = P * ([1 + I]^N - 1) / I

    FV = 5800 * ([1 + 0.06]^15 - 1) / 0.06 = $135,000.35 = $135,000
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