An enterprising student invests $1,000 at an annual interest rate that will grow the original investment to $2,000 in 4 years. In 4 more years, the amount will grow to $4,000, and this pattern of doubling every 4 years repeats over a total time span of 36 years. How much money will the student gain in 36 years? What is the magical annual interest rate the student is earning?

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Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: t be until this occurs?

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A: Future value refers to the estimated value of an asset or investment at a specific point in the…

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A:

Q: How much must you put away at the end of each year

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A: concept. Future value = A ( 1+r )n where , A= amount deposited r= interest rate n= time period.

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A: Here we will use the concept of time value of money to answer the questions.

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A: Annual deposit refers to an amount that is deposited every year for the repayment of a loan amount…

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Q: What rate of return must you earn to achieve your goal?

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Q: 2. (a) A college student, Amy, decides to fund a retirement account with $2000 per year for 8 years,…

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