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How large will her account balance be at end of seven years

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Question - Lauren Blanding's employer offers workers a two-month paid sabbatical every seven years. Lauren, who just started working for the firm, plans to spend her sabbatical touring Europe at an estimated cost of $25,000.To finance her trip, Lauren plans to make six annual deposits of $2,500 each, starting at the end of her first year and continuing through the end of her sixth year, into an investment account earning 8% interest.

Required -

A. Will Lauren's account balance at the end of seven years be enough to pay for her trip?

B. Suppose Lauren increases her annual contribution to $3,150. How large will her account balance be at the end of seven years?

Reference no: EM132858589

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