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a. What would be the compounded value of one dollar in three years if the annual interest rate is 3 percent in Year 1 and

a. What would be the compounded value of one dollar in three years if the annual interest rate is 3 percent in Year 1 and is expected to rise to 5 percent in Year 2 and 6 percent in Year 3?

b. What constant annual interest rate would produce the same compounded value over three years?

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