Your client is 40 years old and wants to begin saving for retirement. You advise the client to put Rs. 8,000 a yearinto the stock market. You estimate that the market's return will be on average of 10% a year. Assume theinvestment will be made at the end of the year. How much money will she have by age 62?
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your answer - The future value of an annuity is the sum of the future valu ll ll es of all of the payments in the annuity. It is possible to take the FV of all cash flows and add them together, but this isn't really pragmatic if there are more than a couple of payments.
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