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You invested $ 1 0 , 0 0 0 on the first day of 2 0 1 6 , at 7 % interest compounded annually.

You invested $10,000 on the first day of 2016, at 7% interest compounded annually.
You plan to cash out the investment on January 1,2026. The average inflation rate is
3.7%.
At the beginning of your investment, there was a motorcycle that would have cost
$8,000. Over the years, motorcycles are inflating at a rate of 7%. You were also
interested in GPS system which cost was $4,000; price for similar GPS systems are
reducing at a 2% rate. If you decide to buy a motorcycle with the GPS system when
you cash out your investment: How much cash will you have left over (or be short)
after you buy both items?
-$941.67
$0(break-even)
$1,732.03
$666.01
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