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Calculate the value at the end of year two

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Problem 1: A company has just sold a product with the following payment plan: $75,000 today, $50,000 at the end of year 1, and $25,000 at the end of year two. If the payments are deposited into an account earning 4.5% per year, calculate the value at the end of year 2.

Select one:

a.$175,536
b.$145,740
c.$185,643
d.$159,152

Reference no: EM133005939

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