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11-04-2024
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a firm wishes to establish a fund which, in 10 years, will accumulate to $10,000,000. The fund will be used to repay an outstanding bond issue. The firm plans to make deposits, which will earn 12 percent, to this fund at the end of each of the 10 years prior to the maturity of the bond. How large must these deposits be to accumulate to $10,000,000?

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