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Year 1: 75% + (5% of 75%) = 75% + 3.75% = 78.75%
Year 2: 78.75% + (5% of 78.75%) = 78.75% + 3.9375% = 82.6875%
Year 3: 82.6875% + (5% of 82.6875%) = 82.6875% + 4.134375% = 86.821875%

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