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An engineer deposits an "X" amount every 6 months for 3 years so that she'll have $10,000 at the end of this period. The interest rate is 5% per year which is rebalanced every 6-month. The amount deposited is most nearly:
Solution: Determine the components and apply the equation:
n = 6 deposits i = 2.5% per 6-month period
F = $10,000(A/F, 2.5%, 6) = 0.15655 A = $1,565.50
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