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Mary wants to accumulate $45,000 in today's dollar terms in the next 6 years. She expects to earn a return of 6.25% per year and inflation is expected to be 1.75%.
A) How much should be the serial payment in the 1st year so that Mary can achieve the target?
$6713; $6523; $7133; or $6830
B) How much should be the serial payment in the 2nd year so that Mary can achieve the target?
$6637; $7258; $6830; or $6950
C) How much should be the serial payment in the 5th year so that Mary can achieve the target?
$7645; $7196; $7321; or $6991
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