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Your company has made the following promises to a group of employees who are retiring today: a cash flow of $300 1 year from today,
Your company has made the following promises to a group of employees who are retiring today: a cash flow of $300 1 year from today, a cash flow of $500 2 years from today, a cash flow of $600 3 years from today? Assume all investments earn an annual interest rate of 10%, compounded annually. (The discount rate is 10%). The instant after they pay the $300 in Year 1, how much is in the account?
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