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    Solving for an annuity

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    Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12 percent per year for the next five years. He will take the proceeds and provide himself with a 10- year annuity. Assuming a 12 percent interest rate, how much will this annuity be?

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    Solution Preview

    Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12 percent per year for the next five years. He will take the proceeds and provide himself with a 10-year annuity.
    Assuming a 12 percent interest rate, how much will this ...

    Solution Summary

    This solution is comprised of a detailed explanation to compute the 10-year annuity for Morgan Jennings.

    $2.19

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