Maria wants to buy an apartment in the city center after, Finance Basics

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Maria wants to buy an apartment in the city center after

Question: (Compounding) Maria wants to buy an apartment in the city center after her graduation in 4 years. An apartment costs $20,000 and the price is expected to increase by 4 percent each year. Maria wants to sell her old house in the suburbs and make a deposit for 8 percent per annum. How much will Maria's new apartment cost and how much she must she save today?

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