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John and Laurie are saving for their daughter's college tuition. They started by saving $5,000 in...

John and Laurie are saving for their daughter's college tuition. They started by saving $5,000 in the first year and increased savings by 3% each year. The present worth of the planned cash flows is $34,202. Given interest rate of 6%, how many years did they save for?

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Answer #1

Hence, it will take 8 years to reach the amount $34,202

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