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Megan Murray wishes to buy a boat in five years that presently costs $225,000. She expects the cost of the boat to increase due to
Megan Murray wishes to buy a boat in five years that presently costs $225,000. She expects the cost of the boat to increase due to inflation by 8% per year for the next two years and 9% per year the following three years. She also wants to spend $75,000 per year for 6 years beginning at the end of 10 years from today. How much must she save each year for the next 5 years if she can earn 6% on her investments? a. $109,179.63 b. $112,112.93 c. $108,898.97 d. $104,683.64 e. None of these are correct
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