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Chapter 20, Problem 3P
To determine

Find the amount that needs to be deposited in a bank.

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How much money you need to put aside for the next five years to have $2000 for the down payment on your car when you graduate. Now consider the situation where you make your deposits every month, and the interest rate is 6.5% compounding monthly.
How much money do you need to deposit in a bank today if you are planning to have $5000 in four years by the time you get out of college? The bank offers a 6.75% interest rate that compounds monthly.
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