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Jim Ring Wants to Attend Northeast College

Question 109

Short Answer

Jim Ring wants to attend Northeast College. He will need $20,000 four years from today. If Jim's bank pays 8% compounded quarterly, what must he deposit today so that he will have the $20,000 in the future? Check your answer by use of the compound table value.

Correct Answer:

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$20,000 × .7284 = $1...

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