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Interest rate on savings account

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You would like to buy a new car for $29,000 in exactly 3 years. The interest rate on your savings account is expected to be 5% per year (compounded yearly). You already have enough funds to buy this car now. However, how much would you actually need to set aside now to buy the car in 3 years (to the nearest dollar)?

Reference no: EM133120939

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