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You are hoping to buy a new boat 5 years from now, and you plan to save $6,200 per year, beginning immediately. You will deposit

  1. You are hoping to buy a new boat 5 years from now, and you plan to save $6,200 per year, beginning immediately. You will deposit your savings in an account that pays 5.2% interest. How much will you have 5 years from now?
  1. Suppose you borrowed $15,000 at a rate of 8.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be?

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