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How much must be deposited

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How much must be deposited today in an account earning 6% annually to accumulate a 20% down payment to use in purchasing a car one year from now, assuming that the car's current price is $20,000, and inflation will be 4%? Hint: The car's price will be 4% higher next year due to inflation. $3,774 $3,782 $3,925 $4,080

Reference no: EM13661234

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