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How much will have to spend on a car after years

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Question 1: Having just turned 16 years old, your friend has their mind set on buying a new car by the time they turn 20 years old. They can afford to save $440 per month. They place the money into an annuity that pays 5.5% per year, compounded monthly. How much will they have to spend on a car after 4 years?

Reference no: EM132584949

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