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Your parents wish to save $30,000 for your wedding scheduled on 31/12/2022. They will start the first monthly deposit by the end of this month,
Your parents wish to save $30,000 for your wedding scheduled on 31/12/2022. They will start the first monthly deposit by the end of this month, on 30/6/2021 and earn j12 = 6% p.a.
(a) What is the regular deposit required per month? [10 marks]
(b) Suppose that, after five deposits, the interest rate falls to j12 = 2%. Determine the new deposit size required to meet the original target of $30,000. [20 marks]
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