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Problems. 5 points each. Show your work in order to be considered for Ir to be considered for partial credit. 1. Use the FORM
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Answer #1

The amount available for them to spend is calculated using the future value of annuity equation

Future value of annuity= Ax[(1+r)^-1]

In four years, the amount available for them to spend is calculated as

$700x (1 + 0,04) *** - 1 Future value of annuity = - 0.04

Money they will have to spend =  $12,080.51

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