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Step 1 : Calculate Future Value of the First 4 Years of DepositsFirst, we need to calculate the future value of the monthly deposits for
Step : Calculate Future Value of the First Years of DepositsFirst, we need to calculate the future value of the monthly deposits for the first years. We'll use the formula for the future value of an annuity:FVPtimes rr n Where:P is the monthly depositr is the monthly interest raten is the number of periodsFor the first years:P$rquarterly interest ratentimes monthsFV times Step : Calculate Future Value of the Next Years of DepositsNext, we calculate the future value of the increased monthly deposits for the next years. We'll use the same formula, but with different values:P$rquarterly interest ratentimes monthsFV times Step : Calculate the Total Future ValueFinally, we add the future values of the two periods to get the total future value:FV total FV FV Let's calculate these values.CalculationsStep : Calculate Future Value of the First Years of DepositsFV times FV times FV times FV times FV times FV Step : Calculate Future Value of the Next Years of DepositsFV times FV times FV times FV times FV times FV Step : Calculate the Total Future ValueFV total FV FV FV total FV total So by the end of the year period, Amir will have saved approximately $### ConclusionAmir will have saved approximately$ by the end of the year period, considering his monthly deposits and the interest earned on those deposits.
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