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FIN 2 2 0 0 - Midterm Exam Page 2 of 1 1 8 . Jim Mayer has deposited $ 7 , 0 0 0

FIN 2200-Midterm Exam
Page 2 of 11
8. Jim Mayer has deposited $7,000 in a guaranteed investment account with a promised rate of 7% compounded annually. He plans to leave it there for 4 full years when he will make a down payment on a car after graduation. How much of a down payment will he be able to make?
a) $8,960.00
b) $1,960.00
c) $2,175.57
d) $9,175.57
e) None of the above.
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