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    Future value and interest

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    Problem:

    Bill needs $8000 to buy a new car in five years. How much should be deposited at the end of every quarter into an account that earns 8% interest compounded quarterly?

    a. $329.25
    b. $345.97
    c. $666.33
    d. $ 489.25
    e. None of the above

    © BrainMass Inc. brainmass.com June 3, 2020, 6:01 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/future-value-and-interest-44478

    Solution Summary

    This shows how to determine the amount deposited in order to have a given future value.

    $2.19

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