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His recently departed Uncle Mikie, may he rest in peace, has left Waldek a 20-year annuity (20 annual payments). He will receive the first payment
His recently departed Uncle Mikie, may he rest in peace, has left Waldek a 20-year annuity (20 annual payments). He will receive the first payment of $11,000 in 6 years from today, and payments will grow at a constant rate of 1% per year thereafter. If he is discounting at 3% (EAR), what is the present value of his inheritance?
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