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23. Marie needs $26,000 as a down payment for a house 4 years from now. She earns 5.25% on her savings. Marie can either deposit one lump sum to day for this purpose or she can wait a year and deposit a lump sum. How much additional money must Marie deposit if she waits for one year rather than making the deposit today?

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Solution Summary

The solution explains how to calculate the addtional amount needed if the savings are done one year later instead of now.

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The amount needed is $26,000 in 4 years. We need to calculate the present value today and the present value ...

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