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His recently departed Uncle Jimmy, may he rest in peace, has left Scott a 15-year annuity (15 annual payments). He will receive the first payment
His recently departed Uncle Jimmy, may he rest in peace, has left Scott a 15-year annuity (15 annual payments). He will receive the first payment of $8,000 in 5 years from today, and payments will grow at a constant rate of 3% per year thereafter. If he is discounting at 6% (EAR), what is the present value of his inheritance?
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