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You just won a $200,000 price in a beauty contest. You want to spend now as much as you can celebrating, but you also want
You just won a $200,000 price in a beauty contest. You want to spend now as much as you can celebrating, but you also want to save enough of that money in a bank account earning 7% per year to make a trip across Europe in 5 years. If you estimate that the cost of the trip is going to be $150,000, how much can you spend now and how much do you need to deposit in the bank account?
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