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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 30% down payment. For
Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs to save enough to make a 30% down payment. For example, to buy a $100,000 home, a person would need to save $30,000. At the end of each year for six years, the women make the following investments: |
Person | Annuity Payment | Type of Account | Expected Annual Return | |
Mary Kate | $3,200 | Savings | 2% | |
Ashley | 4,200 | CDs | 4 | |
Dakota | 5,200 | Bonds | 8 | |
Elle | 5,200 | Stocks | 10 | |
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