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A simple annuity pays 1 0 0 0 at the end of the first year. The payment increases by 3 % per year to compensate

A simple annuity pays

1000

at the end of the first year. The payment increases by

3 %

per year to compensate for inflation. What is the present value of this annuity on the basis of a rate of

7 %

.

.,

if it runs for

20

years?

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