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Assume that Social Security promises you 47,000 per year starting when you retire 45 years from today (the first will get paid 45 years from
Assume that Social Security promises you 47,000 per year starting when you retire 45 years from today (the first will get paid 45 years from now). If your discount rate is 10%, compounded annually, and you plan to live for 17 years after retiring (so that you will receive a total of 18 payments including the first one), what is the value today of Social Security's promise?
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