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Intention of saving enough to purchase a house

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Steve and his wife Christine recently opened an investment account with the intention of saving enough to purchase a house. Their goal is to have $45,000 for a down payment in 5 years. Their account will guarantee them a return of 8% compounded annually. How much do they need to put into the account right now to reach their goal?

  • $30,626.24.
  • $39,546.09.
  • $46,778.96.
  • $51,214.75.

Reference no: EM131259226

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