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How much would you need to deposit in an account now in order to have $3,500.00 in the account in 20 years if the interest is: (a) 8.35% simple interest? (b) 8.35% compounded monthly?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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How much would you need to deposit in an account now in order to have $3,500.00 in the account in 20 years if the interest is:

(a) 8.35% simple interest?

(b) 8.35% compounded monthly?

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