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Assume that you need $1,000 four years from today. To help you reach your goal, your father offers to give you $400 in one year.
Assume that you need $1,000 four years from today. To help you reach your goal, your father offers to give you $400 in one year. In the meantime, you will get a part-time job and receive six additional payments of equal amounts every six months thereafter. All these payments are deposited (right after the receipt) into a bank account that pays 8 percent, compounded semi-annually. How large must each of the six payments be in order to reach the target amount? Keep all answers (intermediate and final) in two decimal places.
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