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1. Mike’s Sport Shop deposits \$3,600 at the end of each year for 12 years at 7% annual interest.

a. How much will this ordinary annuity be worth at the end of the 12 years? (5 points)

b. How much more will this annuity be worth (annuity due) if Mike deposits the money at the beginning of each year instead of at the end of each year?

a. \$64,398.42 the formula for anuity due is FV = PMT (((1+i)^n-1)/i) where fv is future value PMT is payment which is 3600 i is interest rate which is 0.07 n is number of periods which is 12 FV = 3600((1.07^12)-1)/0.07) = 64,398.42b. \$68,906.3...
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