Make for each of six payment in order to achieve your target

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Reference no: EM131585137

You have a goal to raise $2,000 in four years’ time. You intend to contribute $700 at the end of the first year and make six deposits of equal amounts every six months thereafter. Assume all money is deposited into a bank, which pays interest 8% p.a., compounded semi-annually, how much deposit should you make for each of the six payments in order to achieve your target?

Please show the process of calculation and explain your answer.

Reference no: EM131585137

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