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Roger is conducting a biochemical experiment for the next 12months. In the first month, the expenses are estimated to be$10,000. As the experiment progresses, the expenses areexpectedto increase by2 percent each month. Roger plans to pay for theexperiment with a governmentgrant, which is received in fourmonthly installments, starting a month after the experimentcompletion date. Draw the cash flow diagram for thisexperiment.Determine the amount of the monthly installment so that theinstallments received are equal in value to the expensesincurred.Annual nominal interest is 10 percent, compounded monthly.
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