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Sarah knows that she needs $62000 for a 25% down payment on a house she can afford. she found an investment that earns 1.25% interest compounded monthly. How much should she put in the account now, rounded to the nearest dollar, to ensure she has the down payment amount in five years?

a. $58,246
b. $54,722
c. $17,993
d. $29,423

1 Answer

3 votes

Answer is c :)

I have all the work out on paper and this is what I got, checked it with my teacher and it is correct.

User Jonny Lin
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