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Josh wants to purchase a Rolex watch in 4 years, which costs $100,000 in today's dollars. He can earn 8% on his investments and expects

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Josh wants to purchase a Rolex watch in 4 years, which costs $100,000 in today's dollars. He can earn 8% on his investments and expects inflation to be 2.5% per year. What serial payment should Josh make at the end of the second year to be able to purchase the watch in four years? $23,074 $23,651 $24,243 $24,848

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