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(a) You plan to save $500 at the end of each month for the next 2 years. With the expectation of a pay raise, you want to save $850 at the end of each month for 1 year after that. Assuming an interest rate of 1.5% per annum throughout the period of calculation, calculate the value of your savings at the end of 3 years.
(b) It has now been 5 years since you graduated and you plan to take time off to travel. For the next 18 months while you travel, you want to receive $1,000 at the end of each month. Using an applicable interest rate of 2% per annum, how much should you invest in the annuity today?
Writing in the New York Times, economist Tyler Cowen of George Mason University argued:- Is Cowen's position more consistent with that of Robert Gordon or that of Robert Higgs
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if I were to offer you $5,000 today or $10,000 10 years from now, which would you take based on the time value of money? Or would you need some additional information in order
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