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Problem 5: Calculating the Number of Periods/Present Value. You are trying to save to buy...

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Problem 5: Calculating the Number of Periods/Present Value. You are trying to save to buy a new $28,000 Volkswagen. You have $5,000 today that can be invested at your bank. 5a. The bank pays 5.00% annual interest on its accounts. How long will it be before you have enough to buy the car? It will be _years. 5a. Points: 5 5b. Instead of depositing funds in the bank you decide to invest in a mutual fund that you believe will achieve a 6.00% annual rate of return. You want to buy the car in 10 years on the day you turn 35, how much must you invest today? I must invest $ today. 5b. Points: 5

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