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The bank would like to set up a reserve fund. If the fund earns an effective annual rate of 8%. How much does the bank

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The bank would like to set up a reserve fund. If the fund earns an effective annual rate of 8%. How much does the bank need in the fund today if the fund pays an amount of $20,000 today and grows by 3% per annum for an infinite period? Select one: O a. $453,000.00 b. $400,000.00 c. $418,000.00 O d. $432,000.00

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