Annuity Due Converting an annuity to an annuity due decreases the present value. Generally speaking, this...

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Annuity Due Converting an annuity to an annuity due decreasesthe present value. Generally speaking, this statement is True orFalse? Explain it. [“Converting an annuity to an annuity due” meansif you always make payment at the end of each year, now you changeto make the payment at the beginning of each year.]
You believe you will need to have saved $1,000,000 by the timeyou retire in 40 years in order to live comfortably. Inorder to meet your retirement goal, how much must you save eachyearbefore you retire (i.e., over the next 40 years)? Assumethe interest rate will averagely 6% per year over the period.

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Ordinary annuity payment is made at the end of the yearAnnuity due payment is See Answer

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Annuity Due Converting an annuity to an annuity due decreasesthe present value. Generally speaking, this statement is True orFalse? Explain it. [“Converting an annuity to an annuity due” meansif you always make payment at the end of each year, now you changeto make the payment at the beginning of each year.]You believe you will need to have saved $1,000,000 by the timeyou retire in 40 years in order to live comfortably. Inorder to meet your retirement goal, how much must you save eachyearbefore you retire (i.e., over the next 40 years)? Assumethe interest rate will averagely 6% per year over the period.