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Jia Wen has a liability of 12,000 due in eight years. This liability will be met with payments of 5000 in five years and B

Jia Wen has a liability of 12,000 due in eight years. This liability will be met with payments of 5000 in five years and B in 8 + b years. Jia Wen is employing a full immunization strategy using an annual effective interest rate of 3%.

Calculate B/b.

(A) 2807 (B) 2873 (C) 2902 (D) 2976 (E) 3019

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