Holly Krech is planning for her retirement, so she is setting up a payout annuity with...

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Holly Krech is planning for her retirement, so she is setting upa payout annuity with her bank. She wishes to receive a payout of$1,700 per month for twenty years. (Round your answers to thenearest cent.)
(a) How large a monthly payment must Holly Krech make if shesaves for her payout annuity with an ordinary annuity, which shesets up thirty years before her retirement? (The two annuities paythe same interest rate of 7.8% compounded monthly.) $
(b) How large a monthly payment must she make if she sets theordinary annuity up twenty years before her retirement? $

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The formula for annuity payments of P per month for n months is P rPV11rn where r is the interest rate per period and PV is the present value of the deposit Here P 1700 r 781200 00065 and n 2012 240 a As per the above formula the amount that Holly Krech must See Answer

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