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A payment of $5,000 is due in 9 years. To cover this cost, two assets are acquired. The first asset is expected to return $Y

A payment of $5,000 is due in 9 years. To cover this cost, two assets are acquired. The first asset is expected to return $Y in X years, where X<9. The second asset is expected to return $3,000 in 12 years. The annual effective rate of interest is 8%. Calculate the minimum amount returned by the first asset ($Y) under the conditions of Redington immunization.

  1. 1,310

  2. 1,415

  3. 2,123

  4. 2,619

  5. 3,809

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