Minimum amount you need to deposit in your account

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Suppose you are attemping to save $5,000 for a trip to Australia, over a span of 20 months. You open a special account with a 1.2% rate that compounds every 20 months. (Each part needs its OWN table).

A). If you put $300 into the account each month, will you reach your goal? If so, by how much will you "overshoot" $5,000?

B). What is the minimum amount you need to deposit in your account each month in order to each $5,000 in 20 months?

C). Suppose that Aunt Josie gives you $400 to start saving for the trip. By how much would that reduce your minimum monthly deposit?

Reference no: EM131551556

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