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The city council has approved the building of a new bridge over Running Water Creek....

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Finance

The city council has approved the building of a new bridge over Running Water Creek. The bridge will cost $15,000 for initial construction and have an annual maintenance cost of $1,500. The council plans to withdraw money from the citys Bridges and Highways account to open a special account to cover the initial construction and to fund a perpetuity to cover the maintenance costs forever. How much money must be withdrawn from the Bridges and Highways account if the city can expect to earn 5% on the special account?

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