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You would like to have $35,000 in 5 years to purchase a new car. At the end of 2 years you receive a $10,000 bonus...

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You would like to have $35,000 in 5 years to purchase a new car. At the end of 2 years, you receive a $10,000 bonus that you will deposit immediately towards your goal of $35,000 for the new car. In addition to the bonus, how much must you save in monthly equal installments to reach your goal if your cost of capital is 9 % pa compounding monthly? (Hint: Figure out how the bonus payment affects the amount needed) Answer: $ every month (two decimal places)

posted Apr 29, 2018 by anonymous

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