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Gaby puts $13,000 per year (at years end) into an account earning 11% per year for 20 years. Inflation is expected to be 3.25% per

Gaby puts $13,000 per year (at years end) into an account earning 11% per year for 20 years. Inflation is expected to be 3.25% per year. The amount he has in 20 years would only have which of the following as purchasing power in todays dollars.

a.

$104,810

b.

$578,685

c.

$440,247

d.

$834,637

e.

$358,335

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