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You have your eye on a piece of property, but it is not currently for sale. You have been told that the owner will be

You have your eye on a piece of property, but it is not currently for sale. You have been told that the owner will be interested in selling four years from now, when such a sale will be advantageous for tax reasons. A current appraisal values this land at $125,000, and the property inflation rate is 3.5%. 


How much must you deposit today, in an investment fund that returns 7%, compounded daily, in order to finance this future purchase?

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