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You are committed to set aside $4,000 today (year 0 ), $1,000 in year 1 , and $3,000 in year 2 in your deposit account.

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You are committed to set aside $4,000 today (year 0 ), $1,000 in year 1 , and $3,000 in year 2 in your deposit account. Suppose an annual deposit rate equals r=5%. How much money will you have in your bank account at the end of year 3? How many years shall you keep your money in the bank account before you can buy a new motocycle? The motocycle price is $10,000 and it will not change in the near future

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