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A couple who is very much in love decides to get married in 5 years; for which they need $ 12,000, both for the party
A couple who is very much in love decides to get married in 5 years; for which they need $ 12,000, both for the party and for their honeymoon. Both decide that each deposit $ 1,500 in a single bank, which gives an interest rate of 4.25%, compounded quarterly. In year 3 the groom's parents decide to contribute for the wedding, and they deposit 3,500 dollars in the same bank, however the interest rate changes to 5.20% with quarterly capitalization. How much difference does the couple make after 5 years for their wedding?
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1 The couples deposits Each of them deposits 1500 in the bank at an interest rate of 425 compounded ...Get Instant Access to Expert-Tailored Solutions
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