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1. You want to take a vacation in 4 years and feel you'll need $8,500 to do so. If you can earn 5% on your
1. You want to take a vacation in 4 years and feel you'll need $8,500 to do so. If you can earn 5% on your deposits, how much will you need to deposit in each of the next four years to have the needed amount? $1972.10058 2. What is the effective annual rate on a credit card that states that their APR is 21%, compounded monthly? 23.144% 3. What is the future value of $1,000 three years from now at a rate of 6%, continuously compounded? $1,197.22 4. You have an investment that pays you $5000 annually forever. If the initial deposit earns 8%, what was the initial deposit? $62,500
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