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Spirit Mechanic is estimating a total payroll expense of $100,000 at the end of the first year. Starting the second year, the payroll expenses will
Spirit Mechanic is estimating a total payroll expense of $100,000 at the end of the first year. Starting the second year, the payroll expenses will increase by a constant 5 percent per year through the end of the 8-year study period. How much should Spirit deposit in a lump sum today in an investment account that pays 9% interest to be able to pay the payroll expenses every year for the next 8 years?
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