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(2) Gerry pays $W to buy a ten-year annuity with end-of-year payments of $1,400. This purchase price allows her to replace her capital by means
(2) Gerry pays $W to buy a ten-year annuity with end-of-year payments of $1,400. This purchase price allows her to replace her capital by means of a savings account that has an annual effective interest rate of 3% and also to earn an overall annual yield of 6% for the ten years of the annuity. Find W .
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