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Assume that you have graduated and you are expecting a salary of K45,000 that you expect to grow at a rate of 6% per year

Assume that you have graduated and you are expecting a salary of K45,000 that you expect to grow at a rate of 6% per year for the next 40 years, when you will retire. What is the present value of your future salary over your working life if your required return is 9% per year? (Assume the K45, 000 is payable once annually).

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