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Bonnie and Clyde Want to Take a Six-Month Leave of Absence

Question 122

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Bonnie and Clyde want to take a six-month leave of absence from their jobs to travel extensively in South America. Rounded to the next higher month, how long will it take them to save $40,000 for the leave if they make month-end contributions of $700 to their employer's salary deferral plan? The salary deferral plan earns 5.5% compounded semi-annually.

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