What is the present worth of the amount borrowed

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John borrowed some money from a local bank, at year 0, with the intention of buying a car. He is to pay back his debt in five unequal annual deposits starting from year 1. The first deposit is going to be $3,000, and each successive payment will increase by $200. What is the present worth of the amount borrowed, if interest rate is 4% compounded annually? What is the future worth?

Reference no: EM13980679

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