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A contract will pay you $ 5 0 0 0 per year every other year for the next 3 0 years. That is , since

A contract will pay you $

5000

per year every other year for the next

30

years. That is

,

since today is time

0,

the contract will pay you $

5000

in year

2, 4, 6, . . ., 28, 30 .

The discount rate is

8 %

compounded semiannually. What is the present value of this contract?

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