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P3-10. Liliana Alvarez's employer offers its workers a two-month paid sabbatical every seven years.

P3-10. Liliana Alvarez’s employer offers its workers a two-month paid sabbatical every seven years. Liliana, who just started working for the fi rm, plans to spend her sabbatical touring Europe at an estimated cost of $25,000. To fi nance her trip, Liliana plans to make six annual end-of-year deposits of $2,500 each, starting this year, into an investment account earning 8% interest.

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