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a) You will receive $1,000 from your parents as a birthday gift in half year. You...

  1. a) You will receive $1,000 from your parents as a birthday gift in half year. You have decided to invest it at 5% per annual until you have $1,629. How many years will you have to wait from NOW until you achieve your target?

  2. b) You will receive fifty annual payments of $1,000 each beginning at the end of the 40th year. What is the present value of these payments? The appropriate annual discount rate is 10%.

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