Question: please answer in full detail explain all steps Today is your 25th birthday. You're planning to work for 10 years and then, take 3 years
Today is your 25th birthday. You're planning to work for 10 years and then, take 3 years off to go to Europe. During your trip to Europe, you'll need 2000$ per month (end of month). Therefore, you start to save an amount of money at the end of each quarter during the next 10 years. a) Calculate the amount that you have to save quarterly if the interest rate is 8% (compound semi-annually) for the next 5 years, 9% (compound monthly) for the following 5 years, and 10% effective annual afterwards. b) If you decide to save an amount (C) during the next 5 years and twice more (2C) during the following 5 years, what would be the amounts to save? (Interest rates are the same)
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