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6.7 Exercise 23

Avg difficulty 2.5

Richard is saving for new siding for his home. He and his partner believe they will need $37,500 in 10 years to pay for the siding. How much should they invest yearly in a mutual fund they believe will have an annual interest rate of 12%, compounded annually, in order to reach their goal?

OpenStax Contemporary Mathematics, 6.7 Investments, exercise 23

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Adapted from Contemporary Mathematics © 2023 Rice University. Licensed under CC BY 4.0. Source: Contemporary Mathematics. Imported at revision fa7c1a1.