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Krista Lee can purchase a service contract for all of her major appliances for $100 a year. If the appliances are expected to last for

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Krista Lee can purchase a service contract for all of her major appliances for $100 a year. If the appliances are expected to last for 12 years and she earns 5 percent on her savings, what would be the future value of the amount Krista will pay for the service contract? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal ploces.)

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