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Although Joe is interested in the defined benefit offered by UM, he would also like to consider taking a lump sum with the first

  Although Joe is interested in the defined benefit offered by UM, he would also like to consider taking a lump 

Although Joe is interested in the defined benefit offered by UM, he would also like to consider taking a lump sum with the first payment coming one year from today. If his life expectancy is 25 years from today and the prevailing market rate is 8.0%, what should the lump sum be if the annual defined benefit is $40,000?

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