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1. Mrs. Berg wishes to purchase a $32,500 RV upon her retirement in 5 years. She has just won the state lottery and would like
1. Mrs. Berg wishes to purchase a $32,500 RV upon her retirement in 5 years. She has just won the state lottery and would like to set aside enough cash in a savings account paying 6% interest compounded quarterly to buy the RV upon retirement. How much should she deposit? 2. How much money must you deposit into a savings account at the end of each year at 6% interest compounded annually in order to earn $5725.43 interest during a 10-year period? 3. How much money can you borrow at 12% interest compounded semiannually if the loan is to be repaid at half-year intervals for 10 years and you can afford to pay $1000 per half-year? 4. Calculate the rent of a decreasing annuity at 8% interest compounded quarterly with payments made every quarter-year for 12 years and present value $200,000
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