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14 December, 08:26

Tuition of $2700 is due when the spring term begins, in 9 months. What amount should a student deposit today, at 11%, to have enough to pay tuition?

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  1. 14 December, 12:12
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    T = 9 months = 9/12 year = 3/4 year

    r=11%

    A=2700=P (1+r*t/100) = P (1+11*3/4) = P (1+8.25)

    so, P = 2700/9.25 = 291.89 thats the answer
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