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Consider an insurance policy that promises to pay the holder $1,125 per month for the next 20 years. The first payment will be one month

Consider an insurance policy that promises to pay the holder $1,125 per month for the next 20 years. The first payment will be one month after the purchase of the policy. (This type of policy is called aterm annuity.) The appropriate discount rate is an APR of 6.78%, compounded monthly.

What is the value of this policy?

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