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You want to teach your little cousin how money can grow over your time if you save it. You tell your little cousin that you

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You want to teach your little cousin how money can grow over your time if you save it. You tell your little cousin that you will make the following payments into a savings account which you will open for her starting right now. Your little cousin is happy and runs to her mum to say that you are going to give her $1,500 over 5 years. You sit your cousin down and draw the following timeline detailing the stream of cash flows which will be placed into her account. If the current market rate of interest is 5% per annum, you teach your little cousin that the future value of this stream of cash flows (ie. what she will receive in 5 years' time) is closest to: Date 0 2 3 LO $100 $200 $300 $400 $500 ? Cash flow O a $1526, O b. $1684 c. $1763 od $1845

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