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1. You deposit $7,500 at the end of each of the next three years in a bank account that pays 3%. How much will you
1. You deposit $7,500 at the end of each of the next three years in a bank account that pays 3%. How much will you have in your account at the end of the three-year period?
2. What amount today deposited in a bank account paying 3% annually would allow you to withdraw $7,500 at the end of each of the next three years?
3. You currently have $2,000 on hand that you plan to use to purchase a three-year bank certificate of deposit (CD). The CD pays 4% interest annually. How much money will you have when the CD matures?
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