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A senior executive is offered a buyout package by his company that will pay him a monthly benefit for the next 20 years. Monthly benefits
A senior executive is offered a buyout package by his company that will pay him a monthly benefit for the next 20 years. Monthly benefits will remain constant within each of the 20 years. At the end of each 12 month period, the monthly benefits will be adjusted upwards by 2.5%. At an effective annual interest rate of 7%, the buyout package has a value of 150,000. Calculate R= the first monthly benefit.
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