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FinanceQ&A LibraryYou would Ilike to have $59,000 in 5 years for the down payment on anew house following graduation by making deposits at the end of every threemonths in an annuity that pays 4.25% compounded quarterly. (a) How muchshould you deposit at the end of every three months? (b) How much of the$59,000 comes from deposits? (c) How much of the $59,000 comes frominterest? (Round UP to the nearest dollar. For example, $247)OPensyrooon21l 1e0(6)' s6Tei 0hccdoirdW (b)SaavizwDi26. 71 059.000 6 00Question

Asked Oct 26, 2019

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Step 1

Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.

a) Down payment of a new house is $59,000 in the next 5 years. Payments are to be paid every three months with 4.25% interest compounded quarterly.

Therefore,

Step 2

Annuity payment every three months could be calculated as below:

Step 3

Answer: At the end of every three years a deposit of $2663 ...

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