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A $35,000,000 reservoir is to be completed 5 years from now. Its initial maintenance upon completion is estimated to be 3% of the cost of
A $35,000,000 reservoir is to be completed 5 years from now. Its initial maintenance upon completion is estimated to be 3% of the cost of the reservoir and is expected to remain that amount each year forever.
State below how much money now needs to be set aside in a 5.4% interest rate savings account to pay for those annual maintenance costs.
Give answer to closest dollar.
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