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Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs to save enough to make a 25% down payment. For
Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs to save enough to make a 25% down payment. For example, to buy a $100,000 home, a person would need to save $25,000. At the end of each year for four years, the women make the following investments
Person | Annuity Payment | Type of Account | Expected Annual Return |
Mary Kate | $2,400 | Savings | 2% |
Ashley | 3,400 | CDs | 4 |
Dakota | 4,400 | Bonds | 7 |
Elle | 4,400 | Stocks | 11 |
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