Consider the case of the following annuities, and the need to compute either their expected...
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Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Ryan inherited an annuity worth $1, 921.47 from his uncle. The annuity will pay him three equal payments of $800 at the end of each year. The annuity fund is offering a return of _____. Ryan's friend, Sebastian, wants to go to business school. While his father will share some of the expenses, Sebastian still needs to put in the rest on his own. But Sebastian has no money saved for it yet. According to his calculations, it will cost him $41, 402 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4, 500 at the end of every year in a mutual fund, from which he expects to earn a fixed 9% rate of return. It will take approximately _____ years for Sebastian to save enough money to go to business school
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