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Your older sister deposited $5,000 today at 6 percent interest compounded annually for 5 years. You would like to have just as much money at
Your older sister deposited $5,000 today at 6 percent interest compounded annually for 5 years. You would like to have just as much money at the end of the next 5 years as your sister will have. However, you can only earn 4 percent interest compounded annually. How much more money must you deposit today than your sister did if you are to have the same amount at the end of the 5 years?
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