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Omar wants to make a gift of $10,000 in todays dollars to his parents at the end of each of the next 10 years. If
Omar wants to make a gift of $10,000 in todays dollars to his parents at the end of each of the next 10 years. If the annual rate of return is 8% and inflation is 3%, what is the value of the funds he must have in hand today to meet this need for the 10-year period? Identify the following variables: N, I/Y, PV, PMT, FV
Please show how the answer is computed (steps, a formula used, etc.)
Please try to avoid mathematical shorthand or please explain the answer to help me understand.
Thank You!
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