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Jim expects to receive a gift of $1000 when he graduate 1 year from today. Jim can invest his gift at 6% compounded annually and he would like to use the funds in 4 years a car. How much will he have in 4 years to spend on a car?
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P=1000
R=6%
N=4
A=P(1+R/100)^N
A=1000(1+0.06)^4
A=1262.48 DOLLARS
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