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Bob Katz has been saving $4500 annually for the past 10 years in an account earning...

Bob Katz has been saving $4500 annually for the past 10 years in an account earning 7%. Bob would like to have a total of $150,000 by the end of eight more years. How much will Bob now need so save each year for the next eight years to reach his $150,000 goal (using 7%)?

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Answer #1

A/c balance today is $62,174.02

Hence, required saving each year is $4,208.02

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