How much money must locy deposit in the bank each year

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Question 1: Locy wants to buy a house in another seven years. The type of house he wants to buy is currently selling for OR 50,000, and the price will increase at a compound rate of 10% per year. Locy can presently invest in a bank fixed deposit earning a compound annual rate 14% per year. How much money must Locy deposit in the bank each year to be able to purchase a house in seven years from now?

Reference no: EM132544944

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