Question
A married couple plans to acquire a house within 5 years, they plan to open an investment fund in their local bank. With the objective
A married couple plans to acquire a house within 5 years, they plan to open an investment fund in their local bank. With the objective of accumulating at the end of the 5th year the sufficient amount to buy the property that according to forecasts in the market would cost $ 3,980,000 at that time. By mutual agreement, she proposes to contribute the necessary funds to cover 35% of the total value of the house. With the intention of accumulating the necessary amount, each of them decides to make individual deposits according to the following schedule: (1) She will make biweekly payments of magnitude A1, while (2) He will contribute monthly payments of magnitude A2. Determine the amount of deposits A1 (biweekly) and A2 (monthly), if the investment rate offered by the bank is 9% per annum, compounded biweekly, and if 2 fortnights in a month, 24 fortnights in one year, and 12 months per year are considered .
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