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Assume an annuity will pay $1,000 a year for five years with the first payment occurring in Year 4, that is, four years from today.

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Assume an annuity will pay $1,000 a year for five years with the first payment occurring in Year 4, that is, four years from today. When you compute the present value of that annuity using the PV formula, the PV will be as of which point in time? 0 Year 1 0 Year 2 O Today, Year o O Year 4 O Year 3

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