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a) Gregg just turned 22 and wants to have $10,283 saved in 8 years by his 30 th birthday. If he currently has $6,000 in
a) Gregg just turned 22 and wants to have $10,283 saved in 8 years by his 30th birthday. If he currently has $6,000 in a bond fund, how much interest does he need to make this happen?
b) You have saved $5,000 for a used car. If you invest it in a CD (Certificate of Deposit), earning 5 percent compounded annually, how long would it take to buy a car that costs $7,755?
c) Linda needs $10,000 in 4 years to use as a down payment on a house. She has $6830 to invest today. What amount of interest does she need to earn to make this happen?
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