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2. [5 points] An annuity-immediate pays $400 per month for the first three years. After that the annuity payments increase by $50 per month for

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2. [5 points] An annuity-immediate pays $400 per month for the first three years. After that the annuity payments increase by $50 per month for five years and then remain level for an additional six years. At a nominal rate of 12% convertible monthly, what is the present value of this annuity

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