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Congratulations - you have secured your first job after graduating. Your employer is offering to pay out your signing bonus in one of two formats.

Congratulations - you have secured your first job after graduating. Your employer is offering to pay out your signing bonus in one of two formats. The first option is the amount of $3600 in 4 years. The second option is to receive the amount of $1300 immediately followed by some unknown annuity that is paid at the end of each year for 4 years with the first annuity payment received at the end of year 1. Using an interest rate of 5.50%, determine the unknown annuity amount for the second option that would make the present value of both options equivalent.

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