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An annuity provides for 14 consecutive end-of-year payment of $85,000 in actual dollars. The general inflation rate is 4% annually, and the inflation-free interest rate
"An annuity provides for 14 consecutive end-of-year payment of $85,000 in actual dollars. The general inflation rate is 4% annually, and the inflation-free interest rate is 6.7% annually. What is the present value of the annuity after considering the effects of inflation?"
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