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Rodney has $2,000 in cash received as graduation gifts from various relatives. He wants to invest it in a guaranteed investment certificate (GIC) so that
Rodney has $2,000 in cash received as graduation gifts from various relatives. He wants to invest it in a guaranteed investment certificate (GIC) so that he will have a down payment on a car when he graduates from university in five years. His bank will pay 7 percent interest compounded annually for the five-year GIC. How much will Rodney have in five years to put down on his car? Ignoring income tax effects
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