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The Williams family has a new-born baby. Mr. Williams decided to invest $6,000 which is 10% of his salary in a mutual fund earning 7%
The Williams family has a new-born baby. Mr. Williams decided to invest $6,000 which is 10% of his salary in a mutual fund earning 7% per year to prepare a high-quality life for their baby. He is beginning to make the annual deposits on the day that baby Williams was born and will continue to make it the same as 10% of his salary until his baby will be 25. Mr. Williams thinks that his salary will increase by an average of 5% each year for 25 years. How much money will be accumulated in baby Williams mutual fund when she is 25?
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