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1. Mr. Smith wants to give his son an annuity of $5,000 per year starting on his 21st birthday, which will be increased to
1. Mr. Smith wants to give his son an annuity of $5,000 per year starting on his 21st birthday, which will be increased to $10,000 per year on his 25th birthday with the final payment on his 30th birthday. What is the present value of that annuity on his son's 10th birthday if the effective annual rate of interest is 5%? A. Less than $35,500 B. At least $35,500, but less than $36,000 C. At least $36,000, but less than $36,500 D. At least $36,500, but less than $37,000 E. At least $37,000
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