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A woman who has just won $45,000 in a lottery wants to deposit enough of her winnings into savings accounts so that she will

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Answer #1

Present value of deposits=PV=?

Quarterly interest rate=i=7%/4=0.0175

Number of quarters left=n=15*4=60

Future value of deposit=FV=$10000

We know that

PV=FV/(1+i)n=10000/(1+0.0175)60 =$3531.30

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