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2. Monthly vs. Yearly Sayings You are able to save $200...

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Accounting

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2. Monthly vs. Yearly Sayings You are able to save $200 a month ($2,400 per year) You can invest in a CD account with 4.5% annual return or an equity fund with an expected annual return of 8%. Assume that the expected annual return of the equity fund materializes, what will be your savings in 35 years for both investment opportunities? a) If you make annual savings of $2,400 to the CD. (assume annual compounding) b) If you make annual savings of $2,400 to the equity fund. (assume annual compounding) c) If you make monthly savings of $200 to the CD. (assume annual compounding) d) If you make monthly savings of $200 to the equity. (assume annual compounding) e) If you make monthly savings of $200 to the CD. (assume monthly compounding) f) If you make monthly savings of $200 to the equity. (assume monthly compounding)

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