Question: Suppose you know you will need $2,500 two years from now in order to make a down payment on a car. BankOne is offering 4%

Suppose you know you will need $2,500 two years from now in order to make a down payment on a car. BankOne is offering 4% interest (compounded annually) for two-year accounts, and BankTwo is offering 4.5% (compounded annually) for two-year accounts. How much will you need to invest in BankTwo?

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