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Computation of EMI of the loan
Suppose you have decided to start saving money to buy a motorcycle for your loving spouse's 40thbirthday, which is five years away. You estimate the amount you will have to pay at that time will be $6,000. The savings account you established for the gift offers 16% per annum interest compounded quarterly.
How much will you have to deposit each year (at year-end) to have your $6,000 if your first deposit is made one year from today and the final deposit is made on the day you purchase the motorcycle?
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