Mara will need $10 000 when she goes to college 5 years from now. She has 2 options for saving the money. Option A: A regular deposit at the end of each month into an account that earns 7% p year compounded monthly Option B: A regular deposit at the end of each year into an account that earns 7.25% per year compounded annually Which option should Mara choose? Show calculations and justify your choice

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A: Step 1: Given Value for Calculation Compound = Semiannually = 2Time = t = 5 * 2 = 10Future Value =…

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Q: . Find the size of the payments if money earns 3% compounding quarterly.

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Q: Henry is going to retire in 22 years and would like to invest $50,000 now into his retirement…

A: Compounded Monthly formula :

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A: If the interest is compounded, then the formula used is A=P1+rnnt , where, A is the final amount, P…

Q: Suppose you make a down payment of 6% of $27,600 and finance the rest at 1.5% compounded monthly for…

A: The down payment is 6% of $27,600, which is: 0.06 x $27,600 = $1,656   So you are financing the…