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Suppose you want to purchase a car for $26,000 when you graduate in two years. At that time you will take out a 5-year loan at your bank with an APR of 5%, and monthly payments. Based on your estimated earnings, you think you'll be able to afford loan payments of $400 per month. You plan to save up the difference between the cost of the car and the amount you'll borrow by making monthly deposits over the next two years in a bank account that pays an annual rate of 3%. How large must your savings deposits be for you to achieve your desired down payment amount?

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