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A couple of generations ago, a relative of John wanted to share her wealth with family members and decided to open a special bank account.
A couple of generations ago, a relative of John wanted to share her wealth with family members and decided to open a special bank account. The purpose of such financial instrument was to pay out an annuity forever, which would be shared among all family members. Given that the initial deposit was 285,835 dollars and the prevailing interest rate at that time was 8 %, compounded annually, find the value of the annuity this family collects every year.
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