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A University is offering a charitable gift program. A former student who is now 5 0 years old is consider the following offer: The student
A University is offering a charitable gift program. A former student who is now years old is consider the following offer: The student can invest $ today and then will be paid a APR return starting on his th birthday ie For a $ investment, a rate would mean $ per year The program will pay the cash flow for this investment while you are still alive. You anticipate living more years after your th birthday. The former student wants a return of on his investments, but would like to consider this opportunity.
Using the student's desired return, what is the value of this deferred annuity today on his th birthday?
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