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Labor costs have been increasing at an annual rate of 8%. A firm wishes to set...

Labor costs have been increasing at an annual rate of 8%. A firm wishes to set aside funds to cover labor costs for the next 5 years. Determine how much must be set aside today if the money will be invested and will earn interest at a rate of 10%. The labor cost next year will be $58,969.

Answer is approx. 258,613. Can you please show good work to get there. Thanks!

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