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7 . 4 . Suppose that an annuity pays $ 1 0 , 0 0 0 per year for 1 0 years, with payments made

7.4 .

Suppose that an annuity pays $

10, 000

per year for

10

years, with payments

made continuously. We will compute the present value of this income stream,

assuming an annual interest rate of year

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