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The payments are in the form of an annuity and the present value can be found using the PVIFA table. For 10 years and 12%, the factor is 5.650. The amount to be deposited today is: $12,000 x 5.650 = $67,800
b) Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this account for seven years. How much will she have in the account at the end of the seventh year?
The amount at the end of 7 years will be $64,308.
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