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Mathematics, 13.07.2019 13:30 ProfS7160

Bruce and karen have a new-born baby, lisa. generous grandparents have made a gift of $15 000 available for lisa. bruce and karen have decided to invest this in trust for lisa so that on her 21st birthday she will have a deposit to buy a one-bedroom home unit. bruce and karen are considering making additional annual payments to the trust account, in order to increase the deposit amount to 40% of the expected price of the unit. assume that the current price of a one-bedroom home unit is $220 000 and that property prices grow at 3% p. a. assume that the trust account receives interest at 6.5% p. a. b) how much must bruce and karen contribute each year to achieve the desired deposit amount of 40% of the unit’s expected purchase price?

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