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(9) Tom is holding a transferable UK-based annuity contract and receiving an annuity of HK$ 70,000.00 per month for a period of 20 years. What

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(9) Tom is holding a transferable UK-based annuity contract and receiving an annuity of HK$ 70,000.00 per month for a period of 20 years. What is the total amount of the market value for the right of purchasing the annuity today, given that the market interest rate is 2%? Please make assumptions if necessary. (20 marks)

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