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You would like to have $35,000 to spend on a new car in five years. You...

You would like to have $35,000 to spend on a new car in five years. You open a savings account with an APR of 4%. How much must you deposit each quarter to reach this goal?

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Answer #1

The amount to be deposited each quarter is found using the future value of annuity equation

Solving for the value of A in the above equation

A = $1,589.5 $ 1590

Amount to be deposited each quarter to reach the goal = $ 1590

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