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Suppose Your cousin opens a savings account today (time 0) so that starting 5 years from now (in year 5) she can withdraw $125 and
Suppose Your cousin opens a savings account today (time 0) so that starting 5 years from now (in year 5) she can withdraw $125 and then, every year after into perpetuity, she can increase the amount withdrawn by 1.50% with respect to the prior year. If the interest rate is 3.00%, how much does Your cousin has to deposit today (year O) so she can keep this schedule of withdrawals? $7,404.06 O $3,702.03 O $3,594.20 $3,489.52
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