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Solve the problem. Round to the nearest cent.

Joan wants to have $250,000 when she retires in 27 years. How much should she invest annually in her annuity to do this if the interest is 7% compounded annually?

A) $1861.10
B) $3356.43
C) $2672.15
D) $937.86

1 answer

x( 1.07^27 - 1)/.07 =25000
x(74.483823..) = 250000
x = $ 3356.43

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