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Frank is about to retire. For the next 25 years, he wants to receive an annual payout that starts at $24,000 and then receive an

Frank is about to retire. For the next 25 years, he wants to receive an annual payout that starts at $24,000 and then receive an annual Cost-of-Living Adjustments of 5%. If Franks' savings accrue 6% interest annually,

(a) How much principal does Frank need in order to afford his payout annuity goal?

(b) How much will Franks payout be in the second year?

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