give you $20,000 now. A part-time job will allow you to make six additional deposits, one at the end of each year. If the bank pays 6% interest (compounded annually), how large must your annual deposits be? 20,000 Annual=? 60,000

Economics Today and Tomorrow, Student Edition
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Author:McGraw-Hill
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Chapter6: Saving And Investing
Section6.1: Why Save?
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Problem # 2: You want $60,000 six years from now for a new car, and your grandparents offer to
give you $20,000 now. A part-time job will allow you to make six additional deposits, one at the end
of each year. If the bank pays 6% interest (compounded annually), how large must your annual
deposits be?
60,000
20,000
Tuma
Annual=?
Transcribed Image Text:Problem # 2: You want $60,000 six years from now for a new car, and your grandparents offer to give you $20,000 now. A part-time job will allow you to make six additional deposits, one at the end of each year. If the bank pays 6% interest (compounded annually), how large must your annual deposits be? 60,000 20,000 Tuma Annual=?
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