1. To save the down payment, Mary deposited monthly in a savings account earning 2.5% compounded monthly. If it took Mary 5 years to save up the down payment, how much money was Mary depositing each month? 2. She has saved $6200 in a downpayment.
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First, we need to find the future value of the down payment after 5 years. We know that the interest rate is 2.5% compounded monthly, and the total time is 5 years. The formula for the future value of an ordinary annuity is: $FV = P \times \frac{(1 + r)^{nt} - Show more…
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