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You want to save $200 a month to buy a new car, which is estimated to cost $50,000. You have access to an investment that
You want to save $200 a month to buy a new car, which is estimated to cost $50,000. You have access to an investment that earns 8% compounded monthly. a) How many months will it take until you have at least $50,000 in the account? What would be your total interest earned? b) How many months will it take if you save $50 weekly instead, and the interest rate was rather 34.66% compounded weekly? What would be your total interest earned in this case? c) Which of the two options would you choose, and why?
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