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The bank would like to set up a reserve fund. If the fund earns an effective annual rate of 5%. How much does the bank

The bank would like to set up a reserve fund. If the fund earns an effective annual rate of 5%. How much does the bank need in the fund today if the fund pays a fixed amount of $30,000 annually for an infinite period? Select one:

a. $550,000.00 b. $612,000.00 c. $600,000.00 d. $565,000.00

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