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A person buys an annuity that pays him $800 a month for 20-years, first payment made one month from now. He also buys inflation protection,

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A person buys an annuity that pays him $800 a month for 20-years, first payment made one month from now. He also buys inflation protection, such that the monthly payment increases by 2% every three months. If i(12) = 6%, how much does he have to pay for this annuity? (6 marks)

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