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Problem 3-22 (algorithmic) Question Help Suppose a young newlywed couple is planning to buy a home three years from now. To s

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Answer #1
Using the future value of annuity formula the amount to be deposited can be calculated
Monthly interest rate 6%/12
Monthly interest rate 0.50%
No of payments 3*12
No of payments 36
Annuity amount Future value/Future value of annuity (i=0.50%,n=36)
Annuity amount 70000/39.3361
Annuity amount $1,780
Thus, amount to be saved each month is $1,780
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