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Meg Lanning has sole income from a trust fund which will pay her $40,000 now, $30,000 in one year and $60,000 in two years time.

Meg Lanning has sole income from a trust fund which will pay her $40,000 now, $30,000 in one year and $60,000 in two years time. Meg wishes to consume $32,000 now and $42,000 in one year. If the capital market offers an interest rate of 5% per year, calculate how much can she consume in two years time

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