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Now you possess $ 2 , 5 0 0 . After a years you are going to be graduate and planning to take a trip

Now you possess $2,500. After a years you are going to be graduate and planning to take a trip then. You wisely decide to invest the money in a bank CD that pays 7% interest. You know that the trip costs $2,600 right now and that inflation for the year is predicted to be 3%. Will you have enough money in a year to purchase the trip? Show your calculations.
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