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1. Liliana Alvarez’s employer offers its workers a two-month paid sabbatical every seven years. Liliana, who just started working for the firm, plans to spend her sabbatical touring Europe at an estimated cost of $25,000. To finance her trip, Liliana plans to make six annual end-of-year deposits of $2,500 each, starting this year, into an investment account earning 8% interest.
2.
You have saved $10,000 toward a down payment on a home. The money is invested in an account earning 7% interest. You will be ready to purchase the new home once your savings account grows to $25,000.
Yes i understand this this answer is available via another course hero user. But I am trying to figure out how to compute this problem. I need step by step process, I am horrible at math and I have to see the whole thing to get it!! Thank you for helping me to understand how the answer is computed.
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