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Problem:

Jean Cleveland currently has $7,750 in a money market account paying 7.25 percent compounded semi-annually. She plans to use this amount and her savings over the next 5 years to make a down payment on a townhouse. She estimates that he will need $20,000 in 5 years.

Required:

Question: How much should she invest in the money market account semi-annually over the next 5 years to achieve this target?

a. $ 886.28

b. $ 757.25

c. $ 650.97

d. $ 610.79

Note: Please show how you came up with the solution.

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Category:- Basic Finance
Reference No.:- M91162266

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