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Economy Ms. Bingham hired an engineering consultant to design a dam for her city. She agreed top consultant $30,000 a year for 5 years. The
Economy
Ms. Bingham hired an engineering consultant to design a dam for her city. She agreed top consultant $30,000 a year for 5 years. The expected inflation rate over this period is 5% annually. If her firm's real interest rate target is 4%, what is the worth of the 5th payment today's dollars? (10pts) Step by Step Solution
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