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I've just retired and my company gave me $100,000 as a retirement gift. I can invest it in a savings account that will return me
I've just retired and my company gave me $100,000 as a retirement gift. I can invest it in a savings account that will return me 4% per year for the next five years. However, I could buy an investment that will return me $8,000 a year for the same period and a lump sum at the end. At the end of year 5 , what would the lump sum need to be for me to be indifferent between the two cashflow streams? The prevailing interest rate is 6%
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